Financial/Actuarial Mathematics Seminar

March 12, 2009



Connecting singular controls and switching controls, with applications

Xin Guo

Department of ORIE, UC Berkeley

March 5, 2009



Abstract

It was well known that a certain class of singular control problems is connected to optimal stopping problems. In this talk, we present a new theoretical connection between singular control of finite variation and optimal switching problems. This correspondence provides a novel method for solving explicitly multi-dimensional singular control problems, and links singular controls and Dynkin games through sequential optimal stopping.


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