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In this paper, we propose a numerical methodology for finding the closed-loop Nash equilibrium of stochastic delay differential games through deep learning. These games are prevalent in finance and economics where multi-agent interaction…

Optimization and Control · Mathematics 2023-07-14 Robert Balkin , Hector D. Ceniceros , Ruimeng Hu

In this note, we extend some recent results on systems of backward stochastic differential equations (BSDEs) with quadratic growth to the case of coupled forward-backward stochastic differential equations (FBSDEs). We work in a Markovian…

Probability · Mathematics 2023-04-05 Joe Jackson

This paper is concerned with a non-zero sum differential game problem of an anticipated forward-backward stochastic differential delayed equation under partial information. We establish a necessary maximum principle and sufficient…

Optimization and Control · Mathematics 2017-02-17 Yi Zhuang

In this article, we concern a kind of partially observed non-zero sum stochastic differential game based on forward and backward stochastic differential equations (FBSDEs). It is required that each player has his own observation equation,…

Optimization and Control · Mathematics 2016-01-05 Jie Xiong , Shuaiqi Zhang , Yi Zhuang

We study a stochastic differential game between two players, controlling a forward stochastic Volterra integral equation (FSVIE). Each player has to optimize his own performance functional which includes a backward stochastic differential…

Probability · Mathematics 2023-03-07 Giulia Di Nunno , Michele Giordano

We analyze a market impact game between $n$ risk averse agents who compete for liquidity in a market impact model with permanent price impact and additional slippage. Most market parameters, including volatility and drift, are allowed to…

Trading and Market Microstructure · Quantitative Finance 2020-01-06 Samuel Drapeau , Peng Luo , Alexander Schied , Dewen Xiong

We study stochastic Nash equilibrium problems with expected valued cost functions whose pseudogradient satisfies restricted monotonicity properties which hold only with respect to the solution. We propose a forward-backward algorithm and…

Optimization and Control · Mathematics 2021-11-05 Barbara Franci , Sergio Grammatico

In this paper we present a scalable deep learning framework for finding Markovian Nash Equilibria in multi-agent stochastic games using fictitious play. The motivation is inspired by theoretical analysis of Forward Backward Stochastic…

Artificial Intelligence · Computer Science 2021-05-24 Tianrong Chen , Ziyi Wang , Ioannis Exarchos , Evangelos A. Theodorou

We investigate stochastic utility maximization games under relative performance concerns in both finite-agent and infinite-agent (graphon) settings. An incomplete market model is considered where agents with power (CRRA) utility functions…

Optimization and Control · Mathematics 2024-12-05 Zongxia Liang , Keyu Zhang , Yaqi Zhuang

In this article we consider a stochastic optimal control problem where the dynamics of the state process, $X(t)$, is a controlled stochastic differential equation with jumps, delay and \emph{noisy memory}. The term noisy memory is, to the…

Optimization and Control · Mathematics 2015-08-28 Kristina R. Dahl , Salah-Eldin A. Mohammed , Bernt Øksendal , Elin Røse

This paper is concerned with a backward-forward stochastic differential equation (BFSDE) system, in which a large number of negligible agents are coupled in their dynamics via state average. Here some BSDE is introduced as the dynamics of…

Optimization and Control · Mathematics 2014-03-18 Jianhui Huang , Shujun Wang , Zhen Wu

In this paper, we consider a system of forward-backward stochastic differential equations (FBSDEs) with monotone functionals. We show the existence and uniqueness of such a system by the method of continuation similarly to Peng and Wu…

Probability · Mathematics 2018-08-07 Saran Ahuja , Weiluo Ren , Tzu-Wei Yang

We propose a model of inter-bank lending and borrowing which takes into account clearing debt obligations. The evolution of log-monetary reserves of $N$ banks is described by coupled diffusions driven by controls with delay in their drifts.…

Mathematical Finance · Quantitative Finance 2016-07-22 Rene Carmona , Jean-Pierre Fouque , Seyyed Mostafa Mousavi , Li-Hsien Sun

In multi-agent autonomous systems, deception is a fundamental concept which characterizes the exploitation of unbalanced information to mislead victims into choosing oblivious actions. This effectively alters the system's long term…

Systems and Control · Electrical Eng. & Systems 2025-08-27 Michael Tang , Miroslav Krstic , Jorge Poveda

This paper investigates the linear-quadratic-Gaussian (LQG) mean-field game (MFG) for a class of stochastic delay systems. We consider a large population system in which the dynamics of each player satisfies some forward stochastic…

Optimization and Control · Mathematics 2015-10-05 Na Li , Shujun Wang

Motivated by the scarcity of accurate payoff feedback in practical applications of game theory, we examine a class of learning dynamics where players adjust their choices based on past payoff observations that are subject to noise and…

Optimization and Control · Mathematics 2016-06-03 Mario Bravo , Panayotis Mertikopoulos

In this paper, we study Nash equilibrium payoffs for nonzero-sum stochastic differential games via the theory of backward stochastic differential equations. We obtain an existence theorem and a characterization theorem of Nash equilibrium…

Probability · Mathematics 2011-11-30 Qian Lin

In this paper, we apply the idea of fictitious play to design deep neural networks (DNNs), and develop deep learning theory and algorithms for computing the Nash equilibrium of asymmetric $N$-player non-zero-sum stochastic differential…

Optimization and Control · Mathematics 2020-09-07 Ruimeng Hu

Recent extensions to dynamic games of the well-known fictitious play learning procedure in static games were proved to globally converge to stationary Nash equilibria in two important classes of dynamic games (zero-sum and…

Computer Science and Game Theory · Computer Science 2022-07-08 Lucas Baudin , Rida Laraki

Stochastic differential games have been used extensively to model agents' competitions in Finance, for instance, in P2P lending platforms from the Fintech industry, the banking system for systemic risk, and insurance markets. The recently…

Optimization and Control · Mathematics 2021-03-23 Jiequn Han , Ruimeng Hu , Jihao Long
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