A time-changed stochastic control problem and its maximum principle
maximum principle
Abstract:
This paper studies a time-changed stochastic control problem, where the underlying stochastic process
is a Lévy noise time-changed by an inverse subordinator. We establish a maximum principle for the time-changed
stochastic control problem. We also prove the existence and uniqueness of the corresponding time-changed backward
stochastic differential equation involved in the stochastic control problem. Some examples are provided for illustration.
2010 AMS Mathematics Subject Classification: Primary 93E20, 39A50, 60H05;
Keywords and phrases: optimal stochastic control, time-changed L\'evy process, maximum principle