A stochastic clearing model with a Brownian and a compound poisson component

Offer Kella*, David Perry, Wolfgang Stadje

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

25 Scopus citations

Abstract

We consider a stochastic input-output system with additional total clearings at certain random times determined by its own evolution (and specified by a controller). Between two clearings, the stock level process is a superposition of a Brownian motion with drift and a compound Poisson process with positive jumps, reflected at zero. We introduce meaningful cost functionals for this system and determine them explicitly under several (classical and new) clearing policies.

Original languageEnglish
Pages (from-to)1-22
Number of pages22
JournalProbability in the Engineering and Informational Sciences
Volume17
Issue number1
DOIs
StatePublished - 2003

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