• Event Date: March 31, 2015
  • Event End Date: March 31, 2015
  • Event Start Time: 11:45 AM
  • Event End Time: 12:45 PM
  • Event Location: Hill 705
  • Event Type: Mathematical Finance and Probability Seminars
  • Extra Info: Mihai Sirbu, UT Austin

Speaker: Mihai Sirbu, UT Austin

ABSTRACT

We introduce a modification of Perron's method, where semi-solutions are considered in a carefully defined asymptotic sense. With this definition, we can show, in a rather elementary way, that in a zero-sum game or a control problem (with or without model uncertainty), the value function over all strategies coincides with the value function over Markov strategies discretized in time. Therefore, there are always discretized Markov $varepsilon$-optimal strategies, (uniform over the mesh of the time grid, and uniform with respect to the bounded initial condition).