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Related papers: A mean-field game price model with noise

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We propose a model where a producer and a consumer can affect the price dynamics of some commodity controlling drift and volatility of, respectively, the production rate and the consumption rate. We assume that the producer has a short…

Optimization and Control · Mathematics 2021-11-09 René Aïd , Ofelia Bonesini , Giorgia Callegaro , Luciano Campi

We model the dynamics of asset prices and associated derivatives by consideration of the dynamics of the conditional probability density process for the value of an asset at some specified time in the future. In the case where the price…

Pricing of Securities · Quantitative Finance 2011-11-14 Damir Filipović , Lane P. Hughston , Andrea Macrina

The existence of a (partial) market equilibrium price is proved in a complete, continuous time finite-agent market setting. The economic agents act as price takers in a fully competitive setting and maximize exponential utility from…

Mathematical Finance · Quantitative Finance 2022-12-01 Alessandro Prosperi

Empirically derived continuum models of collective behavior among large populations of dynamic agents are a subject of intense study in several fields, including biology, engineering and finance. We formulate and study a mean-field game…

Adaptation and Self-Organizing Systems · Physics 2018-06-22 Piyush Grover , Kaivalya Bakshi , Evangelos A. Theodorou

The competitive nature of Cloud marketplaces as new concerns in delivery of services makes the pricing policies a crucial task for firms. so that, pricing strategies has recently attracted many researchers. Since game theory can handle such…

Computer Science and Game Theory · Computer Science 2023-09-21 Safiye Ghasemi , Mohammad Reza Meybodi , Mehdi Dehghan Takht-Fooladi , Amir Masoud Rahmani

A statistical theory of the mean field is developed. It is based on the proposition that the mean field can be obtained as an energy average. Moreover, it is assumed that the matrix elements of the residual interaction, obtained after the…

Nuclear Theory · Physics 2009-10-30 R. Caracciolo , A. De Pace , H. Feshbach , A. Molinari

We introduce a zero-sum game problem of mean-field type as an extension of the classical zero-sum Dynkin game problem to the case where the payoff processes might depend on the value of the game and its probability law. We establish…

Optimization and Control · Mathematics 2022-05-06 Boualem Djehiche , Roxana Dumitrescu

This paper is concerned with the study of mean field games master equations involving an additional variable modelling common noise. We address cases in which the dynamics of this variable can depend on the state of the game, which requires…

Analysis of PDEs · Mathematics 2024-12-18 Charles Meynard , Charles Bertucci

We consider the randomness of market trade as the origin of price and return stochasticity. We look at time series of trade values and volumes as random variables during the averaging interval {\Delta} and describe the dependences of…

Statistical Finance · Quantitative Finance 2024-06-18 Victor Olkhov

In this paper we consider a mean field approach to modeling the agents flow over a transportation network. In particular, beside a standard framework of mean field games, with controlled dynamics by the agents and costs mass-distribution…

Optimization and Control · Mathematics 2020-06-18 Fabio Bagagiolo , Rosario Maggistro , Raffaele Pesenti

Competitive balance model has been proposed as an extension to the balance model to address the conflict of interests in signed networks arXiv:2001.04664 . In this model two different paradigms compete with each other due to the competitive…

Physics and Society · Physics 2021-10-26 R. Masoumi , F. Oloomi , A. Kargaran , A. Hosseiny , G. R. Jafari

We obtain option pricing formulas for stock price models in which the drift and volatility terms are functionals of a continuous history of the stock prices. That is, the stock dynamics follows a nonlinear stochastic functional differential…

Pricing of Securities · Quantitative Finance 2020-11-17 Flavia Sancier , Salah Mohammed

This paper is concerned with the problem of finding the optimal of extraction policies of an oil field in light of various financial and economical restrictions and constraints. Taking into account the fact that the oil price in worldwide…

Optimization and Control · Mathematics 2016-11-07 Moustapha Pemy

This paper studies the equilibrium consumption under external habit formation in a large population of agents. We first formulate problems under two types of conventional habit formation preferences, namely linear and multiplicative…

Mathematical Finance · Quantitative Finance 2024-03-11 Lijun Bo , Shihua Wang , Xiang Yu

Building on the macroscopic market making framework as a control problem, this paper investigates its extension to stochastic games. In the context of price competition, each agent is benchmarked against the best quote offered by the…

Trading and Market Microstructure · Quantitative Finance 2025-10-14 Ivan Guo , Shijia Jin

We investigate possible origins of trends using a deterministic threshold model, where we refer to long-term variabilities of price changes (price movements) in financial markets as trends. From the investigation we find two phenomena. One…

Trading and Market Microstructure · Quantitative Finance 2015-06-22 Ryo Murakami , Tomomichi Nakamura , Shin Kimura , Masashi Manabe , Toshihiro Tanizawa

In this article, we consider mean field games between a dominating player and a group of representative agents, each of which acts similarly and also interacts with each other through a mean field term being substantially influenced by the…

Optimization and Control · Mathematics 2014-07-28 Alain Bensoussan , Michael Chau , Phillip Yam

In this paper we study a continuous time equilibrium model of limit order book (LOB) in which the liquidity dynamics follows a non-local, reflected mean-field stochastic differential equation (SDE) with evolving intensity. Generalizing the…

Optimization and Control · Mathematics 2020-03-03 Jin Ma , Eunjung Noh

Motivated by recent developments in mean-field games in ecology, in this paper we introduce a connection between the best response dynamics in evolutionary game theory, the minimization of the highest income of a game, and minimizing…

Optimization and Control · Mathematics 2024-11-13 Dante Kalise , Alessio Oliviero , Domènec Ruiz-Balet

This thesis is going to give a gentle introduction to Mean Field Games. It aims to produce a coherent text beginning for simple notions of deterministic control theory progressively to current Mean Field Games theory. The framework…

Optimization and Control · Mathematics 2019-07-03 Athanasios Vasiliadis