This award will support a three year exchange program between U.S. and French researchers in the field of stochastic control. The U.S. group will be under the leadership of Dr. Ionnis Karatzas, Rutgers University. The French group will involve Dr. Alain Bensoussain and Dr. Etienne Pardoux, French National Institute for Information Science and Automation (INRIA) and Dr. Pierre-Louis Lions, University of Paris IX - Dauphine. Both the US and French participants have made outstanding contributions in the area of stochastic control. This project will provide the opportunity for their continued collaboration in such fields as stochastic optimization, stochastic algorithms in large-scale optimization problems, probabilitistic models in financial economics, singular control and its applications to discrete-event systems, applications to manufacturing and data networks and perturbation and analytical methods.