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We consider a market where a finite number of players trade an asset whose supply is a stochastic process. The price formation problem consists of finding a price process that ensures that when agents act optimally to minimize their trading…

Analysis of PDEs · Mathematics 2022-08-15 Diogo Gomes , Julian Gutierrez , Ricardo Ribeiro

We investigate a portfolio selection problem involving multi competitive agents, each exhibiting mean-variance preferences. Unlike classical models, each agent's utility is determined by their relative wealth compared to the average wealth…

Optimization and Control · Mathematics 2025-11-10 Guojiang Shao , Zuo Quan Xu , Qi Zhang

This paper analyzes and explicitly solves a class of long-term average impulse control problems with a specific mean-field interaction. The underlying process is a general one-dimensional diffusion with appropriate boundary behavior. The…

Optimization and Control · Mathematics 2026-02-04 K. L. Helmes , R. H. Stockbridge , C. Zhu

The problem of robust dynamic pricing of an abstract commodity, whose inventory is specified at an initial time but never subsequently replenished, originally studied by Perakis and Sood (2006) in discrete time, is considered from the…

Optimization and Control · Mathematics 2012-09-04 Terry L. Friesz , Changhyun Kwon , Tae Il Kim , Lifan Fan , Tao Yao

We consider a general class of finite-player stochastic games with mean-field interaction, in which the linear-quadratic cost functional includes linear operators acting on controls in $L^2$. We propose a novel approach for deriving the…

Optimization and Control · Mathematics 2024-02-16 Eduardo Abi Jaber , Eyal Neuman , Moritz Voß

Having fixed capacities, homogeneous products and price sensitive customer purchase decision are primary distinguishing characteristics of numerous revenue management systems. Even with two or three rivals, competition is still highly…

Theoretical Economics · Economics 2022-08-08 Niloofar Fadavi

Mean field games are limit models for symmetric $N$-player games with interaction of mean field type as $N\to\infty$. The limit relation is often understood in the sense that a solution of a mean field game allows to construct approximate…

Probability · Mathematics 2017-05-29 Markus Fischer

We study the dynamic pricing of discrete goods over a finite selling horizon. One way to capture both the elastic and stochastic reaction of purchases to price is through a model where sellers control the intensity of a counting process,…

Optimization and Control · Mathematics 2026-01-23 Burak Aydin , Emre Parmaksiz , Ronnie Sircar

This paper studies singular mean field control problems and singular mean field stochastic differential games. Both sufficient and necessary conditions for the optimal controls and for the Nash equilibrium are obtained. Under some…

Optimization and Control · Mathematics 2014-06-10 Yaozhong Hu , Bernt Øksendal , Agnès Sulem

We consider seeking a Nash equilibrium (NE) of a monotone game, played by dynamic agents which are modeled as a class of lower-triangular nonlinear uncertain dynamics with external disturbances. We establish a general framework that…

Optimization and Control · Mathematics 2025-11-04 Weijian Li , Yutao Tang

In this article, we consider the problem of equilibrium price formation in an incomplete securities market consisting of one major financial firm and a large number of minor firms. They carry out continuous trading via the securities…

Mathematical Finance · Quantitative Finance 2022-02-15 Masaaki Fujii , Akihiko Takahashi

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

We investigate Nash equilibrium learning in a competitive Markov Game (MG) environment, where multiple agents compete, and multiple Nash equilibria can exist. In particular, for an oligopolistic dynamic pricing environment, exact Nash…

Computer Science and Game Theory · Computer Science 2024-03-05 Larkin Liu

In competitive supply chains (SCs), pricing decisions are crucial, as they directly impact market share and profitability. Traditional SC models often assume continuous pricing for mathematical convenience, overlooking the practical reality…

General Finance · Quantitative Finance 2025-06-24 Gurkirat Wadhwa , Akansh Verma , Veeraruna Kavitha , Priyank Sinha

We consider a Nash equilibrium between two high-frequency traders in a simple market impact model with transient price impact and additional quadratic transaction costs. Extending a result by Sch\"oneborn (2008), we prove existence and…

Trading and Market Microstructure · Quantitative Finance 2017-05-10 Alexander Schied , Tao Zhang

First order kinetic mean field games formally describe the Nash equilibria of deterministic differential games where agents control their acceleration, asymptotically in the limit as the number of agents tends to infinity. The known results…

Analysis of PDEs · Mathematics 2022-07-12 Megan Griffin-Pickering , Alpár R. Mészáros

We investigate the convergence of symmetric stochastic differential games with interactions via control, where the volatility terms of both idiosyncratic and common noises are controlled. We apply the stochastic maximum principle, following…

Probability · Mathematics 2026-02-19 Erhan Bayraktar , Hiroaki Horikawa

Coordinating communication and control is a key component in the stability and performance of networked multi-agent systems. While single user networked control systems have gained a lot of attention within this domain, in this work, we…

Optimization and Control · Mathematics 2025-06-25 Shubham Aggarwal , Muhammad Aneeq uz Zaman , Melih Bastopcu , Tamer Başar

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

Power system operators and electric utility companies often impose a coincident peak demand charge on customers when the aggregate system demand reaches its maximum. This charge incentivizes customers to strategically shift their peak usage…

Systems and Control · Electrical Eng. & Systems 2025-05-16 Liudong Chen , Jay Sethuraman , Bolun Xu