Special Session 168: Stochastic Analysis and Large Scale Interacting Systems

Fractional Diffusion Bridges
Yuzuru Inahama
Kyushu University
Japan
Co-Author(s):    
Abstract:
Consider ``stochastic differential equations driven by fractional Brownian motion with Hurst parameter $H\in (1/4, 1)$. Their solutions are sometimes called fractional diffusion processes. The main purpose of this talk is conditioning these processes to reach a given terminal point. We call the conditioned processes fractional diffusion bridges. Our main tool for mathematically rigorous conditioning is quasi-sure analysis, which is a potential theoretic part of Malliavin calculus. We also prove a small-noise large deviation principle of Freidlin-Wentzell type for scaled fractional diffusion bridges under a mild ellipticity assumption on the coefficient vector fields.