English

Systems of quasi-variational inequalities related to the switching problem

Probability 2019-10-10 v2

Abstract

We prove the existence of weak solution for a system of quasi-variational inequalities related to a switching problem with dynamic driven by operator associated with a semi-Dirichlet form and with measure data. We give a stochastic representation of solutions in terms of solutions of a system of reflected BSDEs with oblique reflection. As a by-product, we prove the existence of an optimal strategy in the switching problem and show regularity of the payoff function.

Keywords

Cite

@article{arxiv.1609.02221,
  title  = {Systems of quasi-variational inequalities related to the switching problem},
  author = {Tomasz Klimsiak},
  journal= {arXiv preprint arXiv:1609.02221},
  year   = {2019}
}