Federated optimization is a constrained form of distributed optimization that enables training a global model without directly sharing client data. Although existing algorithms can guarantee convergence in theory and often achieve stable training in practice, the reasons behind performance degradation under data heterogeneity remain unclear. To address this gap, the main contribution of this paper is to provide a theoretical perspective that explains why such degradation occurs. We introduce the assumption that heterogeneous client data lead to distinct local optima, and show that this assumption implies two key consequences: 1) the distance among clients' local optima raises the lower bound of the global objective, making perfect fitting of all client data impossible; and 2) in the final training stage, the global model oscillates within a region instead of converging to a single optimum, limiting its ability to fully fit the data. These results provide a principled explanation for performance degradation in non-iid settings, which we further validate through experiments across multiple tasks and neural network architectures. The framework used in this paper is open-sourced at: https://github.com/NPCLEI/fedtorch.

The field of simulation optimization (SO) encompasses various methods developed to optimize complex, expensive-to-sample stochastic systems. Established methods include, but are not limited to, ranking-and-selection for finite alternatives and surrogate-based methods for continuous domains, with broad applications in engineering and operations management. The recent advent of large language models (LLMs) offers a new paradigm for exploiting system structure and automating the strategic selection and composition of these established SO methods into a tailored optimization procedure. This work introduces SOCRATES (Simulation Optimization with Correlated Replicas and Adaptive Trajectory Evaluations), a novel two-stage procedure that leverages LLMs to automate the design of tailored SO algorithms. The first stage constructs an ensemble of digital replicas of the real system. An LLM is employed to implement causal discovery from a textual description of the system, generating a structural `skeleton' that guides the sample-efficient learning of the replicas. In the second stage, this replica ensemble is used as an inexpensive testbed to evaluate a set of baseline SO algorithms. An LLM then acts as a meta-optimizer, analyzing the performance trajectories of these algorithms to iteratively revise and compose a final, hybrid optimization schedule. This schedule is designed to be adaptive, with the ability to be updated during the final execution on the real system when the optimization performance deviates from expectations. By integrating LLM-driven reasoning with LLM-assisted trajectory-aware meta-optimization, SOCRATES creates an effective and sample-efficient solution for complex SO optimization problems.

We introduce two multifidelity trust-region methods based on the Magical Trust Region (MTR) framework. MTR augments the classical trust-region step with a secondary, informative direction. In our approaches, the secondary ``magical'' directions are determined by solving coarse trust-region subproblems based on low-fidelity objective models. The first proposed method, Sketched Trust-Region (STR), constructs this secondary direction using a sketched matrix to reduce the dimensionality of the trust-region subproblem. The second method, SVD Trust-Region (SVDTR), defines the magical direction via a truncated singular value decomposition of the dataset, capturing the leading directions of variability. Several numerical examples illustrate the potential gain in efficiency.

The rapid growth of electric vehicles (EVs) necessitates the strategic placement of charging stations to optimize resource utilization and minimize user inconvenience. Reinforcement learning (RL) offers an innovative approach to identifying optimal charging station locations; however, existing methods face challenges due to their deterministic reward systems, which limit efficiency. Because real-world conditions are dynamic and uncertain, a deterministic reward structure cannot fully capture the complexities of charging station placement. As a result, evaluation becomes costly and time-consuming, and less reflective of real-world scenarios. To address this challenge, we propose a novel framework that integrates deep RL with agent-based simulations to model EV movement and estimate charging demand in real time. Our approach employs a hybrid RL agent with dual Q-networks to select optimal locations and configure charging ports, guided by a hybrid reward function that combines deterministic factors with simulation-derived feedback. Case studies in Hanoi, Vietnam, show that our method reduces average waiting times by 53.28% compared to the initial state, outperforming static baseline methods. This scalable and adaptive solution enhances EV infrastructure planning, effectively addressing real-world complexities and improving user experience.

Urban traffic congestion stems from the misalignment between self-interested routing decisions and socially optimal flows. Intersections, as critical bottlenecks, amplify these inefficiencies because existing control schemes often neglect drivers' strategic behavior. Autonomous intersections, enabled by vehicle-to-infrastructure communication, permit vehicle-level scheduling based on individual requests. Leveraging this fine-grained control, we propose a non-monetary mechanism that strategically adjusts request timestamps-delaying or advancing passage times-to incentivize socially efficient routing. We present a hierarchical architecture separating local scheduling by roadside units from network-wide timestamp adjustments by a central planner. We establish an experimentally validated analytical model, prove the existence and essential uniqueness of equilibrium flows and formulate the planner's problem as an offline bilevel optimization program solvable with standard tools. Experiments on the Sioux Falls network show up to a 68% reduction in the efficiency gap between equilibrium and optimal flows, demonstrating scalability and effectiveness.

With the emergence of large model-based agents, widely adopted transformer-based architectures inevitably produce excessively long token embeddings for transmission, which may result in high bandwidth overhead, increased power consumption and latency. In this letter, we propose a task-oriented multimodal token transmission scheme for efficient multimodal information fusion and utilization. To improve the efficiency of token transmission, we design a two-stage training algotithm, including cross-modal alignment and task-oriented fine-tuning, for large model-based token communication. Meanwhile, token compression is performed using a sliding window pooling operation to save communication resources. To balance the trade-off between latency and model performance caused by compression, we formulate a weighted-sum optimization problem over latency and validation loss. We jointly optimizes bandwidth, power allocation, and token length across users by using an alternating optimization method. Simulation results demonstrate that the proposed algorithm outperforms the baseline under different bandwidth and power budgets. Moreover, the two-stage training algorithm achieves higher accuracy across various signal-to-noise ratios than the method without cross-modal alignment.

Efficient optimization remains a fundamental challenge across numerous scientific and engineering domains, especially when objective function and gradient evaluations are computationally expensive. While zeroth-order optimization methods offer effective approaches when gradients are inaccessible, their practical performance can be limited by the high cost associated with function queries. This work introduces the bi-fidelity stochastic subspace descent (BF-SSD) algorithm, a novel zeroth-order optimization method designed to reduce this computational burden. BF-SSD leverages a bi-fidelity framework, constructing a surrogate model from a combination of computationally inexpensive low-fidelity (LF) and accurate high-fidelity (HF) function evaluations. This surrogate model facilitates an efficient backtracking line search for step size selection, for which we provide theoretical convergence guarantees under standard assumptions. We perform a comprehensive empirical evaluation of BF-SSD across four distinct problems: a synthetic optimization benchmark, dual-form kernel ridge regression, black-box adversarial attacks on machine learning models, and transformer-based black-box language model fine-tuning. Numerical results demonstrate that BF-SSD consistently achieves superior optimization performance while requiring significantly fewer HF function evaluations compared to relevant baseline methods. This study highlights the efficacy of integrating bi-fidelity strategies within zeroth-order optimization, positioning BF-SSD as a promising and computationally efficient approach for tackling large-scale, high-dimensional problems encountered in various real-world applications.

Discrete-choice life cycle models of labor supply can be used to estimate how social security reforms influence employment rate. In a life cycle model, optimal employment choices during the life course of an individual must be solved. Mostly, life cycle models have been solved with dynamic programming, which is not feasible when the state space is large, as often is the case in a realistic life cycle model. Solving a complex life cycle model requires the use of approximate methods, such as reinforced learning algorithms. We compare how well a deep reinforced learning algorithm ACKTR and dynamic programming solve a relatively simple life cycle model. To analyze results, we use a selection of statistics and also compare the resulting optimal employment choices at various states. The statistics demonstrate that ACKTR yields almost as good results as dynamic programming. Qualitatively, dynamic programming yields more spiked aggregate employment profiles than ACKTR. The results obtained with ACKTR provide a good, yet not perfect, approximation to the results of dynamic programming. In addition to the baseline case, we analyze two social security reforms: (1) an increase of retirement age, and (2) universal basic income. Our results suggest that reinforced learning algorithms can be of significant value in developing social security reforms.

Fine-tuning foundation models has emerged as a powerful approach for generating objects with specific desired properties. Reinforcement learning (RL) provides an effective framework for this purpose, enabling models to generate outputs that maximize a given reward function. However, in many applications such as text generation and drug discovery, it can be suboptimal to optimize using a single reward signal, as multiple evaluation criteria are often necessary. This paper proposes a novel reinforcement learning-based method for fine-tuning foundation models using multiple reward signals. By employing an iterative fine-tuning strategy across these rewards, our approach generalizes state-of-the-art RL-based methods. We further provide a theoretical analysis that offers insights into the performance of multi-reward RL fine-tuning. Experimental results across diverse domains including text, biological sequence, and small molecule generation, demonstrate the effectiveness of the proposed algorithm compared to state-of-the-art baselines.

The placement of Cloud-Native Network Functions (CNFs) across the Cloud-Continuum represents a core challenge in the orchestration of current 5G and future 6G networks. The process involves the placement of interdependent computing tasks, structured as Service Function Chains, over distributed cloud infrastructures. This is achieved while satisfying strict resource, bandwidth and latency constraints. It is acknowledged that classical approaches, including mixed-integer nonlinear programming, heuristics and reinforcement learning are limited in terms of scalability, constraint handling and generalisation capacity. In the present study, a novel theoretical framework is proposed, which is based on Denoising Diffusion Probabilistic Models (DDPM) for CNF placement. The present approach proposes a reconceptualisation of placement as a generative graph to assignment task, where the placement problem is encoded as a heterogeneous graph, and a Graph Neural Network denoiser is trained to iteratively refine noisy CNF-to-cloud assignment matrices. The model incorporates constraint-specific losses directly into the loss function, thereby allowing it to learn feasible solution spaces. The integration of the DDPM formulation with structured combinatorial constraints is achieved through a rigorous and systematic approach. Extensive evaluations across diverse topologies have been conducted, which have confirmed that the model consistently produces feasible solutions with orders of magnitude faster inference than MINLP solvers. The results obtained demonstrate the potential of diffusion-based generative modelling for constrained network embedding problems, making an impact towards the practical, scalable orchestration of distributed Cloud-Native Network Functions.