Max-plus Stochastic Control and Risk-sensitivity

dc.creatorFleming, Wendell H.
dc.creatorKaise, Hidehiro
dc.creatorSheu, Shuenn-Jyi
dc.date2009-01-20
dc.date.accessioned2026-07-07T12:32:08Z
dc.date.available2026-07-07T12:32:08Z
dc.descriptionIn the Maslov idempotent probability calculus, expectations of random variables are defined so as to be linear with respect to max-plus addition and scalar multiplication. This paper considers control problems in which the objective is to minimize the max-plus expectation of some max-plus additive running cost. Such problems arise naturally as limits of some types of risk sensitive stochastic control problems. The value function is a viscosity solution to a quasivariational inequality (QVI) of dynamic programming. Equivalence of this QVI to a nonlinear parabolic PDE with discontinuous Hamiltonian is used to prove a comparison theorem for viscosity sub- and super-solutions. An example from math finance is given, and an application in nonlinear H-infinity control is sketched.
dc.description58 pages
dc.identifierhttps://arxiv.org/abs/0901.3007
dc.identifierhttp://arxiv.org/abs/0901.3007
dc.identifier.urihttp://salesiana.dossiersoluciones.com/handle/123456789/216682
dc.subjectOptimization and Control
dc.subjectProbability
dc.subject35F20 (Primary) 49L20, 49L25, 93E03 (Secondary)
dc.titleMax-plus Stochastic Control and Risk-sensitivity
dc.typetext

Files

Collections