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The reverse H\"older inequality for matrix-valued stochastic exponentials and applications to quadratic BSDE systems

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arxiv 2202.13886 v1 pith:TYKW43AD submitted 2022-02-28 math.PR

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keywords bsdeinequalitylinearmatrix-valuedolderquadraticreversesystems
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In this paper, we study the connections between three concepts - the reverse H\"older inequality for matrix-valued martingales, the well-posedness of linear BSDEs with unbounded coefficients, and the well-posedness of quadratic BSDE systems. In particular, we show that a linear BSDE with bmo (bounded mean oscillation) coefficients is well-posed if and only if the stochastic exponential of a related matrix-valued martingale satisfies a reverse H\"older inequality. Furthermore, we give structural conditions under which these two equivalent conditions are satisfied. Finally, we apply our results on linear equations to obtain global well-posedness results for two new classes of non-Markovian quadratic BSDE systems with special structure.

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  1. Sensitivity Analysis of Distributionally Robust BSDEs and RBSDEs

    math.OC 2025-11 conditional novelty 6.0 of 10

    First-order sensitivities of non-Markovian distributionally robust control/stopping problems under L∞ and L2 drift perturbations equal the L1/L2 norms of the Z component of the corresponding (R)BSDE.

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