The fractional obstacle problem with drift: higher regularity of free boundaries

Abstract: We study the higher regularity of free boundaries in obstacle problems for integro-differential operators with drift, like $(-\Delta)^s +b\cdot\nabla$, in the subcritical regime $s>\frac{1}{2}$. Our main result states that once the free boundary is $C^1$ then it is $C^\infty$, whenever $s\not\in\mathbb{Q}$. In order to achieve this, we establish a fine boundary expansion for solutions to linear nonlocal equations with drift in terms of the powers of distance function. Quite interestingly, due to the drift term, the powers do not increase by natural numbers and the fact that $s$ is irrational plays al important role. Such expansion still allows us to prove a higher order boundary Harnack inequality, where the regularity holds in the tangential directions only.