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A sequential estimation problem with control and discretionary stopping
Uppsala University, Disciplinary Domain of Science and Technology, Mathematics and Computer Science, Department of Mathematics, Probability Theory and Combinatorics.
Columbia Univ, Dept Math & Stat, 2990 Broadway, New York, NY 10027 USA..
2022 (English)In: PROBABILITY UNCERTAINTY AND QUANTITATIVE RISK, ISSN 2095-9672, Vol. 7, no 3, p. 151-168Article in journal (Refereed) Published
Abstract [en]

We show that " full-bang " control is optimal in a problem which combines features of (i) sequential least-squares estimation with Bayesian updating, for a random quantity observed in a bath of white noise; (ii) bounded control of the rate at which observations are received, with a superquadratic cost per unit time; and (iii) " fast " discretionary stopping. We develop also the optimal filtering and stopping rules in this context.

Place, publisher, year, edition, pages
American Institute of Mathematical Sciences, 2022. Vol. 7, no 3, p. 151-168
Keywords [en]
Sequential analysis, Filtering, Optimal stopping, Stochastic control, Bold play
National Category
Probability Theory and Statistics
Identifiers
URN: urn:nbn:se:uu:diva-487123DOI: 10.3934/puqr.2022011ISI: 000864537700001OAI: oai:DiVA.org:uu-487123DiVA, id: diva2:1705925
Funder
Swedish Research Council, 2019-03525Available from: 2022-10-24 Created: 2022-10-24 Last updated: 2022-10-24Bibliographically approved

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Ekström, Erik

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