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Optimal stopping of BSDEs with constrained jumps and related double obstacle PDEs
Linnaeus University, Faculty of Technology, Department of Physics and Electrical Engineering.ORCID iD: 0000-0003-3111-4820
2025 (English)In: NoDEA. Nonlinear differential equations and applications (Printed ed.), ISSN 1021-9722, E-ISSN 1420-9004, Vol. 32, no 2, article id 20Article in journal (Refereed) Published
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Abstract [en]

We consider partial differential equations (PDEs) characterized by an upper barrier that depends on the solution itself and a fixed lower barrier, while accommodating a non-local driver. First, we show a Feynman–Kac representation for the PDE when the driver is local. Specifically, we relate the non-linear Snell envelope, arising from an optimal stopping problem—where the underlying process is the first component in the solution to a stopped backward stochastic differential equation (BSDE) with jumps and a constraint on the jumps process—to a viscosity solution for the PDE. Leveraging this Feynman–Kac representation, we subsequently prove existence and uniqueness of viscosity solutions in the non-local setting by employing a contraction argument. This approach also introduces a novel form of non-linear Snell envelope and expands the probabilistic representation theory for PDEs. 

Place, publisher, year, edition, pages
Springer Nature, 2025. Vol. 32, no 2, article id 20
National Category
Probability Theory and Statistics Mathematical Analysis
Research subject
Mathematics, Applied Mathematics
Identifiers
URN: urn:nbn:se:lnu:diva-136665DOI: 10.1007/s00030-025-01026-wISI: 001410773600001Scopus ID: 2-s2.0-85217451367OAI: oai:DiVA.org:lnu-136665DiVA, id: diva2:1937834
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Linnaeus UniversityAvailable from: 2025-02-15 Created: 2025-02-15 Last updated: 2025-02-17Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
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