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In this work we study a finite horizon optimal liquidation problem with multiplicative price impact in algorithmic trading, using market orders. We analyze the case when an agent is trading on a market with two financial assets, whose…

Optimization and Control · Mathematics 2020-10-07 Riccardo Cesari , Harry Zheng

We consider a multi-player stochastic differential game with linear McKean-Vlasov dynamics and quadratic cost functional depending on the variance and mean of the state and control actions of the players in open-loop form. Finite and…

Probability · Mathematics 2018-12-04 Enzo Miller , Huyen Pham

We consider a class of $N$-player games and mean-field games of singular controls with ergodic performance criterion, providing a benchmark case for irreversible investment games featuring mean-field interaction and strategic…

Optimization and Control · Mathematics 2025-04-30 Federico Cannerozzi , Giorgio Ferrari

In this study, we present models where participants strategically select their risk levels and earn corresponding rewards, mirroring real-world competition across various sectors. Our analysis starts with a normal form game involving two…

Computational Finance · Quantitative Finance 2023-05-31 Louis Abraham

We introduce a new measure of the discrepancy in strategic games between the social welfare in a Nash equilibrium and in a social optimum, that we call selfishness level. It is the smallest fraction of the social welfare that needs to be…

Computer Science and Game Theory · Computer Science 2014-04-04 Krzysztof R. Apt , Guido Schaefer

In finite games mixed Nash equilibria always exist, but pure equilibria may fail to exist. To assess the relevance of this nonexistence, we consider games where the payoffs are drawn at random. In particular, we focus on games where a large…

Computer Science and Game Theory · Computer Science 2020-06-18 Ben Amiet , Andrea Collevecchio , Marco Scarsini , Ziwen Zhong

We study mean field games and corresponding $N$-player games in continuous time over a finite time horizon where the position of each agent belongs to a finite state space. As opposed to previous works on finite state mean field games, we…

Probability · Mathematics 2018-02-01 Alekos Cecchin , Markus Fischer

We study the optimal portfolio liquidation problem over a finite horizon in a limit order book with bid-ask spread and temporary market price impact penalizing speedy execution trades. We use a continuous-time modeling framework, but in…

Probability · Mathematics 2014-01-10 Idris Kharroubi , Huyen Pham

We investigate a mean field game model for the production of exhaustible resources. In this model, firms produce comparable goods, strategically set their production rate in order to maximise profit, and leave the market as soon as they…

Optimization and Control · Mathematics 2019-02-27 P. Jameson Graber , Charafeddine Mouzouni

We consider the mean-field game where each agent determines the optimal time to exit the game by solving an optimal stopping problem with reward function depending on the density of the state processes of agents still present in the game.…

Optimization and Control · Mathematics 2020-07-09 Géraldine Bouveret , Roxana Dumitrescu , Peter Tankov

We study the problem of computing an approximate Nash equilibrium of a game whose strategy space is continuous without access to gradients of the utility function. Such games arise, for example, when players' strategies are represented by…

Computer Science and Game Theory · Computer Science 2025-10-28 Carlos Martin , Tuomas Sandholm

This paper presents algorithms for non-zero sum nonlinear constrained dynamic games with full information. Such problems emerge when multiple players with action constraints and differing objectives interact with the same dynamic system.…

Systems and Control · Electrical Eng. & Systems 2020-01-08 Bolei Di , Andrew Lamperski

Dynamic games offer a versatile framework for modeling the evolving interactions of strategic agents, whose steady-state behavior can be captured by the Nash equilibria of the games. Nash equilibria are often computed in feedback, with…

Systems and Control · Electrical Eng. & Systems 2024-11-22 Chih-Yuan Chiu , Jingqi Li , Maulik Bhatt , Negar Mehr

In this paper we consider non zero-sum games where multiple players control the drift of a process, and their payoffs depend on its ergodic behaviour. We establish their connection with systems of Ergodic BSDEs, and prove the existence of a…

Probability · Mathematics 2017-06-16 Samuel N. Cohen , Victor Fedyashov

Examining the behavior of multi-agent systems is vitally important to many emerging distributed applications - game theory has emerged as a powerful tool set in which to do so. The main approach of game-theoretic techniques is to model…

Computer Science and Game Theory · Computer Science 2024-06-03 Rohit Konda , Rahul Chandan , Jason Marden

Trading algorithms that execute large orders are susceptible to exploitation by order anticipation strategies. This paper studies the influence of order anticipation strategies in a multi-investor model of optimal execution under transient…

Trading and Market Microstructure · Quantitative Finance 2019-03-12 Elias Strehle

We investigate the convergence properties of a continuous-time optimization method, the \textit{Mean-Field Best Response} flow, for solving convex-concave min-max games with entropy regularization. We introduce suitable Lyapunov functions…

Optimization and Control · Mathematics 2025-03-11 Razvan-Andrei Lascu , Mateusz B. Majka , Łukasz Szpruch

Convertible instruments are contracts, used in venture financing, which give investors the right to receive shares in the venture in certain circumstances. In liquidity events, investors may have the option to either receive back their…

Theoretical Economics · Economics 2021-11-25 Ron van der Meyden

In this paper, a Nash-type fictitious game framework is introduced to handle a time-inconsistent linear-quadratic optimal control. The Nash-type game in this framework is called fictitious as it is between the decision maker (called real…

Optimization and Control · Mathematics 2021-10-04 Yuan-Hua Ni , Binbin Si , Xinzhen Zhang

For a mean field game model with a major and infinite minor players, we characterize a notion of Nash equilibrium via a system of so-called master equations, namely a system of nonlinear transport equations in the space of measures. Then,…

Optimization and Control · Mathematics 2018-11-08 Pierre Cardaliaguet , Marco Cirant , Alessio Porretta
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