The stochastic control problem of following a Brownian path by a process of bounded variation, and subject to a reflecting barrier at the origin (reflected follower), is reduced to a question of optimal stopping with absorption. Direct probabilistic arguments are used to establish the equivalence of the two problems under suitable conditions on the cost functions.
No takes yet. Share an insight, caveat, or question.
Karatzas et al. (1985) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: