Regularization by random translation of potentials for the continuous PAM and related models in arbitrary dimension
Florian Bechtold

TL;DR
This paper introduces a noise-based regularization technique for the continuous parabolic Anderson model using fractional Brownian motion shifts, enabling well-posedness in any dimension without renormalization.
Contribution
It demonstrates that small Hurst parameter shifts of potentials ensure well-posedness and stability for the PAM in arbitrary dimensions, avoiding renormalization.
Findings
Establishes well-posedness for PAM with fractional Brownian motion shifts
Provides a Feynman-Kac formula for the regularized solution
Shows stability of solutions under potential shifts
Abstract
We study a regularization by noise phenomenon for the continuous parabolic Anderson model with a potential shifted along paths of fractional Brownian motion. We demonstrate that provided the Hurst parameter is chosen sufficiently small, this shift allows to establish well-posedness and stability to the corresponding problem - without the need of renormalization - in any dimension. We moreover provide a robustified Feynman-Kac type formula for the unique solution to the regularized problem building upon regularity estimates for the local time of fractional Brownian motion as well as non-linear Young integration.
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Taxonomy
TopicsStochastic processes and financial applications · Stochastic processes and statistical mechanics · Financial Risk and Volatility Modeling
