Optimal stochastic impulse control problem with delay with actions decided at the execution time

Fuente: arXiv
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Main Authors: Hamadène, Said, Hdhiri, Ibtissam
Format: Preprint
Published: 2026
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author Hamadène, Said
Hdhiri, Ibtissam
author_facet Hamadène, Said
Hdhiri, Ibtissam
contents In this paper, we consider a class of stochastic impulse control problem when there is a fixed delay $Δ$ between the decision and execution times. The dynamics of the controlled system between two impulses is an arbitrary adapted stochastic process. Unlike the most existing literature, we consider the problem when the impulse sizes are decided at the execution time in both risk-neutral and risk-sensitive cases. This model fits more, in the real life, for some problems such as the pricing of swing options. The horizon T of the problem can be finite or infinite. In each case we show the existence of an optimal strategy. The main tools we use are the notions of reflected Backward Stochastic Differential Equations (BSDEs for short) and the Snell envelope of processes.
format Preprint
id arxiv_https___arxiv_org_abs_2601_15803
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle Optimal stochastic impulse control problem with delay with actions decided at the execution time
Hamadène, Said
Hdhiri, Ibtissam
Probability
In this paper, we consider a class of stochastic impulse control problem when there is a fixed delay $Δ$ between the decision and execution times. The dynamics of the controlled system between two impulses is an arbitrary adapted stochastic process. Unlike the most existing literature, we consider the problem when the impulse sizes are decided at the execution time in both risk-neutral and risk-sensitive cases. This model fits more, in the real life, for some problems such as the pricing of swing options. The horizon T of the problem can be finite or infinite. In each case we show the existence of an optimal strategy. The main tools we use are the notions of reflected Backward Stochastic Differential Equations (BSDEs for short) and the Snell envelope of processes.
title Optimal stochastic impulse control problem with delay with actions decided at the execution time
topic Probability
url https://arxiv.org/abs/2601.15803