On the monotonicity principle of optimal Skorokhod embedding problem

Gaoyue Guo, Xiaolu Tan, Nizar Touzi

Research output: Contribution to journalArticlepeer-review

Abstract

This is a continuation of our accompanying paper [SIAM J. Control Optim., 54 (2016), pp. 2174-2201] We provide an alternative proof of the monotonicity principle for the optimal Skorokhod embedding problem established in [Beiglböck, Cox, and Huesmann, Optimal Transport and Skorokhod Embedding, preprint, 2013]. Our proof is based on the adaptation of the Monge-Kantorovich duality in our context, a delicate application of the optional cross-section theorem, and a clever conditioning argument introduced in [Beiglböck, Cox, and Huesmann, Optimal Transport and Skorokhod Embedding, preprint, 2013].

Original languageEnglish (US)
Pages (from-to)2478-2489
Number of pages12
JournalSIAM Journal on Control and Optimization
Volume54
Issue number5
DOIs
StatePublished - 2016

Keywords

  • Monotonicity principle
  • Optimal Skorokhod embedding
  • Stop-go pair

ASJC Scopus subject areas

  • Control and Optimization
  • Applied Mathematics

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