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Adapted topologies and higher rank signatures

Abstract:
The topology of weak convergence does not account for the growth of information over time that is captured in the filtration of an adapted stochastic process. For example, two adapted stochastic processes can have very similar laws but give completely different results in applications such as optimal stopping, queuing theory, or stochastic programming. To address such discontinuities, Aldous introduced the extended weak topology, and subsequently, Hoover and Keisler showed that both, weak topology and extended weak topology, are just the first two topologies in a sequence of topologies that get increasingly finer. We use higher rank expected signatures to embed adapted processes into graded linear spaces and show that these embeddings induce the adapted topologies of Hoover–Keisler.
Publication status:
Published
Peer review status:
Peer reviewed

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Publisher copy:
10.1214/22-AAP1862

Authors


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Institution:
University of Oxford
Division:
MPLS
Department:
Mathematical Institute
Oxford college:
St Hugh's College
Role:
Author
ORCID:
0000-0003-2644-8906


Publisher:
Institute of Mathematical Statistics
Journal:
Annals of Applied Probability More from this journal
Volume:
33
Issue:
3
Pages:
2136-2175
Publication date:
2023-05-02
Acceptance date:
2022-06-14
DOI:
ISSN:
1050-5164


Language:
English
Keywords:
Pubs id:
1105637
Local pid:
pubs:1105637
Deposit date:
2023-01-12

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