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In this paper, we consider discrete-time partially observed mean-field games with the risk-sensitive optimality criterion. We introduce risk-sensitivity behaviour for each agent via an exponential utility function. In the game model, each…

Systems and Control · Electrical Eng. & Systems 2022-11-11 Naci Saldi , Tamer Basar , Maxim Raginsky

We study the optimal portfolio selection problem under relative performance criteria in the market model with random coefficients from the perspective of many players game theory. We consider five random coefficients which consist of three…

Portfolio Management · Quantitative Finance 2022-09-16 Jeong Yin Park

We provide a stochastic analysis of an overlapping-generations model under incomplete markets. By casting individual optimisation with idiosyncratic income risk into a forward-backward stochastic differential equation (FBSDE) system, we (i)…

Probability · Mathematics 2025-09-08 Cangxiong Chen , Sigmund Ellingsrud , Fabian Harang , Alfonso Irarrazabal , Avi Mayorcas

We address the generalized Nash equilibrium seeking problem in a partial-decision information scenario, where each agent can only exchange information with some neighbors, although its cost function possibly depends on the strategies of all…

Optimization and Control · Mathematics 2021-12-14 Mattia Bianchi , Giuseppe Belgioioso , Sergio Grammatico

This paper studies an optimal investment-consumption problem for competitive agents with exponential or power utilities and a common finite time horizon. Each agent regards the average of habit formation and wealth from all peers as…

Optimization and Control · Mathematics 2024-05-06 Zongxia Liang , Keyu Zhang

Inspired by the recent work by Shapiro et al. [45], we propose a Bayesian distributionally robust Nash equilibrium (BDRNE) model where each player lacks complete information on the true probability distribution of the underlying uncertainty…

Optimization and Control · Mathematics 2025-08-18 Jian Liu , Ziheng Su , Huifu Xu

We present a fully-distributed algorithm for Nash equilibrium seeking in aggregative games over networks. The proposed scheme endows each agent with a gradient-based scheme equipped with a tracking mechanism to locally reconstruct the…

Systems and Control · Electrical Eng. & Systems 2025-05-28 Guido Carnevale , Filippo Fabiani , Filiberto Fele , Kostas Margellos , Giuseppe Notarstefano

We propose a data-driven Neural Network (NN) optimization framework to determine the optimal multi-period dynamic asset allocation strategy for outperforming a general stochastic target. We formulate the problem as an optimal stochastic…

Computational Finance · Quantitative Finance 2020-06-30 Chendi Ni , Yuying Li , Peter Forsyth , Ray Carroll

This paper studies an optimal forward investment problem in an incomplete market with model uncertainty, in which the underlying stocks depend on the correlated stochastic factors. The uncertainty stems from the probability measure chosen…

Portfolio Management · Quantitative Finance 2021-05-05 Juan Li , Wenqiang Li , Gechun Liang

Graphon games have been introduced to study games with many players who interact through a weighted graph of interaction. By passing to the limit, a game with a continuum of players is obtained, in which the interactions are through a…

Optimization and Control · Mathematics 2024-04-02 Mathieu Laurière , Ludovic Tangpi , Xuchen Zhou

This paper studies the n-player game and the mean field game under the CRRA relative performance on terminal wealth, in which the interaction occurs by peer competition. In the model with n agents, the price dynamics of underlying risky…

Mathematical Finance · Quantitative Finance 2023-02-10 Lijun Bo , Shihua Wang , Xiang Yu

We consider a system consisting of multiple interdependent assets, and a set of defenders, each responsible for securing a subset of the assets against an attacker. The interdependencies between the assets are captured by an attack graph,…

Systems and Control · Electrical Eng. & Systems 2020-05-12 Mustafa Abdallah , Parinaz Naghizadeh , Ashish R. Hota , Timothy Cason , Saurabh Bagchi , Shreyas Sundaram

We study the perfect information Nash equilibrium between a broker and her clients -- an informed trader and an uniformed trader. In our model, the broker trades in the lit exchange where trades have instantaneous and transient price impact…

Trading and Market Microstructure · Quantitative Finance 2025-07-23 Álvaro Cartea , Sebastian Jaimungal , Leandro Sánchez-Betancourt

This paper studies a continuous-time optimal portfolio selection problem in the complete market for a behavioral investor whose preference is of the prospect type with probability distortion. The investor concerns about the terminal…

Portfolio Management · Quantitative Finance 2022-11-11 Jing Peng , Pengyu Wei , Zuo Quan Xu

This paper studies an asset pricing model in a partially observable market with a large number of heterogeneous agents using the mean field game theory. In this model, we assume that investors can only observe stock prices and must infer…

Pricing of Securities · Quantitative Finance 2025-04-02 Masashi Sekine

We introduce a new methodology that enables detection of the onset of convergence towards Nash equilibria in simple repeated games with infinitely large strategy spaces, thereby revealing the heuristics used in decision-making. The method…

General Finance · Quantitative Finance 2020-05-06 Jørgen Vitting Andersen , Philippe de Peretti

We study a common-pool resource game where the resource experiences failure with a probability that grows with the aggregate investment in the resource. To capture decision making under such uncertainty, we model each player's risk…

Computer Science and Game Theory · Computer Science 2016-07-04 Ashish R. Hota , Siddharth Garg , Shreyas Sundaram

We study the distribution of strategies in a large game that models how agents choose among different double auction markets. We classify the possible mean field Nash equilibria, which include potentially segregated states where an agent…

Computer Science and Game Theory · Computer Science 2018-09-05 Robin Nicole , Peter Sollich

A growing line of work reframes preference-based fine-tuning of large language models game-theoretically: Nash Learning from Human Feedback (NLHF) recasts the problem as a zero-sum game over policies. However, optimization is over expected…

Computer Science and Game Theory · Computer Science 2026-05-14 Max Horwitz , Jake Gonzales , Eric Mazumdar , Lillian J. Ratliff

We consider for the first time a stochastic generalized Nash equilibrium problem, i.e., with expected-value cost functions and joint feasibility constraints, under partial-decision information, meaning that the agents communicate only with…

Optimization and Control · Mathematics 2021-06-02 Barbara Franci , Sergio Grammatico