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We develop an option pricing model based on a tug-of-war game. This two-player zero-sum stochastic differential game is formulated in the context of a multi-dimensional financial market. The issuer and the holder try to manipulate asset…

Analysis of PDEs · Mathematics 2014-10-08 Kaj Nyström , Mikko Parviainen

We study a differential game where two players separately control their own dynamics, pay a running cost, and moreover pay an exit cost (quitting the game) when they leave a fixed domain. In particular, each player has its own domain and…

Optimization and Control · Mathematics 2019-10-16 Fabio Bagagiolo , Rosario Maggistro , Marta Zoppello

The paper is concerned with two-person games with saddle point. We investigate the limits of value functions for long-time-average payoff, discounted average payoff, and the payoff that follows a probability density. Most of our assumptions…

Optimization and Control · Mathematics 2015-01-29 Dmitry Khlopin

We consider a continuous time stochastic dynamic game between a stopper (Player $1$, the \textit{owner} of an asset yielding an income) and a controller (Player $2$, the \textit{manager} of the asset), where the manager is either effective…

Probability · Mathematics 2023-07-06 Andi Bodnariu , Kristoffer Lindensjö

In this paper, we present a family of a control-stopping games which arise naturally in equilibrium-based models of market microstructure, as well as in other models with strategic buyers and sellers. A distinctive feature of this family of…

Mathematical Finance · Quantitative Finance 2019-03-20 Roman Gayduk , Sergey Nadtochiy

We consider stochastic impulse control problems where the process is driven by a general one-dimensional diffusion. We shall show a new mathematical characterization of the value function as a linear function in a certain transformed space.…

Optimization and Control · Mathematics 2007-05-23 Masahiko Egami

This paper concerns value functions of time-dependent tug-of-war games. We first prove the existence and uniqueness of value functions and verify that these game values satisfy a dynamic programming principle. Using the arguments in the…

Analysis of PDEs · Mathematics 2021-04-06 Jeongmin Han

The traditional difficulty about stochastic singular control is to characterize the regularities of the value function and the optimal control policy. In this paper, a multi-dimensional singular control problem is considered. We found the…

Optimization and Control · Mathematics 2014-06-17 Yipeng Yang

In this paper we propose and analyze a class of $N$-player stochastic games that include finite fuel stochastic games as a special case. We first derive sufficient conditions for the Nash equilibrium (NE) in the form of a verification…

Mathematical Finance · Quantitative Finance 2021-10-26 Xin Guo , Wenpin Tang , Renyuan Xu

In the present paper, we study a two-player zero-sum deterministic differential game with both players adopting impulse controls, in infinite time horizon, under rather weak assumptions on the cost functions. We prove by means of the…

Optimization and Control · Mathematics 2021-01-29 Brahim El Asri , Hafid Lalioui , Sehail Mazid

We consider a two-player zero-sum game with integral payoff and with incomplete information on one side, where the payoff is chosen among a continuous set of possible payoffs. We prove that the value function of this game is solution of an…

Probability · Mathematics 2012-02-23 Pierre Cardaliaguet , Catherine Rainer

This paper establishes a probabilistic representation for the solution of the parabolic obstacle problem associated with the normalized $p$-Laplacian. We introduce a zero-sum stochastic tug-of-war game with noise in a space-time cylinder,…

Probability · Mathematics 2025-10-31 Hamid El Bahja

In this paper we study, by probabilistic techniques, the convergence of the value function for a two-scale, infinite-dimensional, stochastic controlled system as the ratio between the two evolution speeds diverges. The value function is…

Optimization and Control · Mathematics 2018-09-12 Giuseppina Guatteri , Gianmario Tessitore

In this paper we focus on regional deterministic optimal control problems, i.e., problems where the dynamics and the cost functional may be different in several regions of the state space and present discontinuities at their interface.…

Optimization and Control · Mathematics 2017-10-06 Guy Barles , Ariela Briani , Emmanuel Trélat

A zero-sum differential game with controlled jump-diffusion driven state is considered, and studied using a combination of dynamic programming and viscosity solution techniques. We prove, under certain conditions, that the value of the game…

Optimization and Control · Mathematics 2010-09-28 Imran H. Biswas

A two-player finite horizon linear-quadratic Stackelberg differential game is considered. The feature of this game is that the control cost of a follower in the cost functionals of both players is small, which means that the game under…

Optimization and Control · Mathematics 2025-12-11 Valery Y. Glizer , Vladimir Turetsky

We study the asymptotic value of a frequency-dependent zero-sum game with separable payoff following a differential approach. The stage payoffs in such games depend on the current actions and on a linear function of the frequency of actions…

Optimization and Control · Mathematics 2019-01-23 Joseph Abdou , Nikolaos Pnevmatikos

We consider a stochastic optimal control problem in a market model with temporary and permanent price impact, which is related to an expected utility maximization problem under finite fuel constraint. We establish the initial condition…

Mathematical Finance · Quantitative Finance 2015-10-13 Mourad Lazgham

This paper addresses a continuous-time risk-minimizing two-player zero-sum stochastic differential game (SDG), in which each player aims to minimize its probability of failure. Failure occurs in the event when the state of the game enters…

Optimization and Control · Mathematics 2023-08-23 Apurva Patil , Yujing Zhou , David Fridovich-Keil , Takashi Tanaka

This paper examines finite zero-sum stochastic games and demonstrates that when the game's duration is sufficiently long, there exists a pair of approximately optimal strategies such that the expected average payoff at any point in the game…

Optimization and Control · Mathematics 2024-12-02 Thomas Ragel , Bruno Ziliotto