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Viscosity Solutions of Systems of Variational Inequalities with Interconnected Bilateral Obstacles

Analysis of PDEs 2012-11-22 v1

Abstract

We study a general class of nonlinear second-order variational inequalities with interconnected bilateral obstacles, related to a multiple modes switching game. Under rather weak assumptions, using systems of penalized unilateral backward SDEs, we construct a continuous viscosity solution of polynomial growth. Moreover, we establish a comparison result which in turn yields uniqueness of the solution.

Keywords

Cite

@article{arxiv.1211.4991,
  title  = {Viscosity Solutions of Systems of Variational Inequalities with Interconnected Bilateral Obstacles},
  author = {Boualem Djehiche and Said Hamadene and Marie Amelie Morlais},
  journal= {arXiv preprint arXiv:1211.4991},
  year   = {2012}
}

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27 pages