Approximating Nash Equilibrium for Production Control with Sticky Price
Optimization and Control
2022-04-08 v1
Abstract
We study a mean field game problem arising from the production control for multiple firms with price stickiness in the commodity market. The price dynamics for each firm is described as a (controlled) jump-diffusion process with mean-field interaction. Each firm aims to maximize her expectation of cumulative net profit coupled with each other through price processes. By solving the limiting control problem and a fixed-point problem, we construct an explicit approximating Nash equilibrium when the number of firms grows large.
Keywords
Cite
@article{arxiv.2204.03300,
title = {Approximating Nash Equilibrium for Production Control with Sticky Price},
author = {Chunmei Jiang and Tongqing Li and Jie Yu},
journal= {arXiv preprint arXiv:2204.03300},
year = {2022}
}