Hopf-Lax approximation for value functions of Lévy optimal control problems

Fuente: arXiv
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Auteurs principaux: Kupper, Michael, Nendel, Max, Sgarabottolo, Alessandro
Format: Preprint
Publié: 2025
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author Kupper, Michael
Nendel, Max
Sgarabottolo, Alessandro
author_facet Kupper, Michael
Nendel, Max
Sgarabottolo, Alessandro
contents In this paper, we investigate stochastic versions of the Hopf-Lax formula which are based on compositions of the Hopf-Lax operator with the transition kernel of a Lévy process taking values in a separable Banach space. We show that, depending on the order of the composition, one obtains upper and lower bounds for the value function of a stochastic optimal control problem associated to the drift controlled Lévy dynamics. Dynamic consistency is restored by iterating the resulting operators. Moreover, the value function of the control problem is approximated both from above and below as the number of iterations tends to infinity, and we provide explicit convergence rates and guarantees for the approximation procedure.
format Preprint
id arxiv_https___arxiv_org_abs_2501_16846
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Hopf-Lax approximation for value functions of Lévy optimal control problems
Kupper, Michael
Nendel, Max
Sgarabottolo, Alessandro
Optimization and Control
Probability
In this paper, we investigate stochastic versions of the Hopf-Lax formula which are based on compositions of the Hopf-Lax operator with the transition kernel of a Lévy process taking values in a separable Banach space. We show that, depending on the order of the composition, one obtains upper and lower bounds for the value function of a stochastic optimal control problem associated to the drift controlled Lévy dynamics. Dynamic consistency is restored by iterating the resulting operators. Moreover, the value function of the control problem is approximated both from above and below as the number of iterations tends to infinity, and we provide explicit convergence rates and guarantees for the approximation procedure.
title Hopf-Lax approximation for value functions of Lévy optimal control problems
topic Optimization and Control
Probability
url https://arxiv.org/abs/2501.16846