Nonzero-sum stochastic games with impulse controls
Basei, Matteo ; Cao, Haoyang ; Guo, Xin
arXiv, Tome 2019 (2019) no. 0, / Harvested from
We consider a general class of nonzero-sum $N$-player stochastic games with impulse controls, where players control the underlying dynamics with discrete interventions. We adopt a verification approach and provide sufficient conditions for the Nash equilibria (NEs) of the game. We then consider the limit situation of $N \to \infty$, that is, a suitable mean-field game (MFG) with impulse controls. We show that under appropriate technical conditions, the MFG is an $\epsilon$-NE approximation to the $N$-player game, with $\epsilon=\frac{1}{\sqrt{N}}$. As an example, we analyze in details a class of stochastic games which extends the classical cash management problem to the game setting. In particular, we characterize the NEs for its two-player case and compare the results to the single-player case, showing the impact of competition on the player's optimal strategy, with sensitivity analysis of the model parameters.
Publié le : 2019-01-23
Classification:  Mathematics - Optimization and Control,  Mathematics - Probability
@article{1901.08085,
     author = {Basei, Matteo and Cao, Haoyang and Guo, Xin},
     title = {Nonzero-sum stochastic games with impulse controls},
     journal = {arXiv},
     volume = {2019},
     number = {0},
     year = {2019},
     language = {en},
     url = {http://dml.mathdoc.fr/item/1901.08085}
}
Basei, Matteo; Cao, Haoyang; Guo, Xin. Nonzero-sum stochastic games with impulse controls. arXiv, Tome 2019 (2019) no. 0, . http://gdmltest.u-ga.fr/item/1901.08085/