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We study zero-sum stochastic games for controlled discrete time Markov chains with risk-sensitive average cost criterion with countable state space and Borel action spaces. The payoff function is nonnegative and possibly unbounded. Under a…

Optimization and Control · Mathematics 2022-01-12 Mrinal K. Ghosh , Subrata Golui , Chandan Pal , Somnath Pradhan

We study two person nonzero-sum stochastic differential games with risk-sensitive discounted and ergodic cost criteria. Under certain conditions we establish a Nash equilibrium in Markov strategies for the discounted cost criterion and a…

Optimization and Control · Mathematics 2016-04-06 Mrinal K. Ghosh , K. Suresh Kumar , Chandan Pal

We consider an investment problem in which an investor performs capital injections to increase the liquidity of a firm for it to maximise profit from market operations. Each time the investor performs an injection, the investor incurs a…

Optimization and Control · Mathematics 2019-10-04 David Mguni

We propose and investigate a discrete-time mean field game model involving risk-averse agents. The model under study is a coupled system of dynamic programming equations with a Kolmogorov equation. The agents' risk aversion is modeled by…

Optimization and Control · Mathematics 2020-12-29 J. Frédéric Bonnans , Pierre Lavigne , Laurent Pfeiffer

In this second part of our two-part paper, we invoke the stochastic maximum principle, conditional Hamiltonian and the coupled backward-forward stochastic differential equations of the first part [1] to derive team optimal decentralized…

Optimization and Control · Mathematics 2013-02-15 Charalambos D. Charalambous , Nasir U. Ahmed

We study a class of optimal stopping games (Dynkin games) of preemption type, with uncertainty about the existence of competitors. The set-up is well-suited to model, for example, real options in the context of investors who do not want to…

Probability · Mathematics 2019-05-17 Tiziano De Angelis , Erik Ekström

One of the most classical games for stochastic processes is the zero-sum Dynkin (stopping) game. We present a complete equilibrium solution to a general formulation of this game with an underlying one-dimensional diffusion. A key result is…

Probability · Mathematics 2024-12-13 Sören Christensen , Kristoffer Lindensjö

We formulate a notion of doubly reflected BSDEs with a default time and two completely separated RCLL barriers. We demonstrate the existence and uniqueness of the solution. Within the defaultable setup, we introduce a type of generalized…

Probability · Mathematics 2025-07-09 Badr Elmansouri , Mohamed El Otmani

We develop a new tool, the time inhomogeneous Poisson equation in the whole space and with a terminal condition at infinity, to study the asymptotic behavior of the non-autonomous multi-scale stochastic system with irregular coefficients,…

Probability · Mathematics 2024-12-13 Ling Wang , Pengcheng Xia , Longjie Xie , Li Yang

Stochastic games are an important class of problems that generalize Markov decision processes to game theoretic scenarios. We consider finite state two-player zero-sum stochastic games over an infinite time horizon with discounted rewards.…

Optimization and Control · Mathematics 2008-06-17 Parikshit Shah , Pablo A. Parrilo

This paper investigates the encirclement control problem involving two groups using a non-cooperative differential game approach. The active group seeks to chase and encircle the passive group, while the passive group responds by fleeing…

Optimization and Control · Mathematics 2025-02-28 Panpan Zhou , Yueyue Xu , Yibei Li , Bo Wahlberg , Xiaoming Hu

This paper shows that penalized backward stochastic differential equation (BSDE), which is often used to approximate and solve the corresponding reflected BSDE, admits both optimal stopping representation and optimal control representation.…

Probability · Mathematics 2015-04-01 Gechun Liang

Studying continuous time counterpart of some discrete time dynamics is now a standard and fruitful technique, as some properties hold in both setups. In game theory, this is usually done by considering differential games on Euclidean…

Optimization and Control · Mathematics 2018-11-13 Vianney Perchet , Marc Quincampoix

This article deals with classes of antagonistic games with two players. A game is specified in terms of two `hostile' stochastic processes representing mutual attacks upon random times exerting casualties of random magnitudes. The game ends…

Probability · Mathematics 2019-01-23 J. H. Dshalalow , K. Iwezulu , R. T. White

We study a differential game that governs the moderate-deviation heavy-traffic asymptotics of a multiclass single-server queueing control problem with a risk-sensitive cost. We consider a cost set on a finite but sufficiently large time…

Probability · Mathematics 2018-05-02 Rami Atar , Asaf Cohen

We analyze a two-player, nonzero-sum Dynkin game of stopping with incomplete information. We assume that each player observes his own Brownian motion, which is not only independent of the other player's Brownian motion but also not…

Probability · Mathematics 2025-04-16 Georgy Gaitsgori , Richard Groenewald

This paper is concerned with the controller-and-stopper stochastic differential game under a regime switching model in an infinite horizon. The state of the system consists of a number of diffusions \emph{coupled} by a continuous-time…

Optimization and Control · Mathematics 2021-11-02 Siyu Lv

In this paper we study the nonzero-sum Dynkin game in continuous time which is a two player non-cooperative game on stopping times. We show that it has a Nash equilibrium point for general stochastic processes. As an application, we…

Pricing of Securities · Quantitative Finance 2008-12-10 Said Hamadene , Jianfeng Zhang

We consider finite-state concurrent stochastic games, played by k>=2 players for an infinite number of rounds, where in every round, each player simultaneously and independently of the other players chooses an action, whereafter the…

Computer Science and Game Theory · Computer Science 2015-06-09 Krishnendu Chatterjee , Kristoffer Arnsfelt Hansen , Rasmus Ibsen-Jensen

When modeling robot interactions as Nash equilibrium problems, it is desirable to place coupled constraints which restrict these interactions to be safe and acceptable (for instance, to avoid collisions). Such games are continuous with…

Computer Science and Game Theory · Computer Science 2025-06-03 Mel Krusniak , Forrest Laine