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To trade tokens in cryptoeconomic systems, automated market makers (AMMs) typically rely on liquidity providers (LPs) that deposit tokens in exchange for rewards. To profit from such rewards, LPs must use effective liquidity provisioning…

Trading and Market Microstructure · Quantitative Finance 2025-01-15 Thanos Drossos , Daniel Kirste , Niclas Kannengießer , Ali Sunyaev

We study discrete-time, finite-state mean-field games (MFGs) under model uncertainty, where agents face ambiguity about the state transition probabilities. Each agent maximizes its expected payoff against the worst-case transitions within…

Optimization and Control · Mathematics 2026-01-21 Zongxia Liang , Zhou Zhou , Yaqi Zhuang , Bin Zou

Independent learners are agents that employ single-agent algorithms in multi-agent systems, intentionally ignoring the effect of other strategic agents. This paper studies mean-field games from a decentralized learning perspective, with two…

Computer Science and Game Theory · Computer Science 2025-02-04 Bora Yongacoglu , Gürdal Arslan , Serdar Yüksel

In [14], Gueant, Lasry and Lions considered the model problem ``What time does meeting start?'' as a prototype for a general class of optimization problems with a continuum of players, called Mean Field Games problems. In this paper we…

Optimization and Control · Mathematics 2014-02-12 Fabio Camilli , Elisabetta Carlini , Claudio Marchi

This paper studies the optimal investment behavior of renewable electricity producers in a competitive market, where both prices and installation costs are influenced by aggregate industry activity. We model the resulting crowding effects…

Optimization and Control · Mathematics 2025-07-16 Emma Hubert , Dimitrios Lolas , Ronnie Sircar

We study continuous-time heterogeneous agent models cast as Mean Field Games, in the Aiyagari-Bewley-Huggett framework. The model couples a Hamilton-Jacobi-Bellman equation for individual optimization with a Fokker-Planck-Kolmogorov…

Optimization and Control · Mathematics 2025-10-02 Fabio Camilli , Qing Tang , Yong-shen Zhou

In a regular mean field game (MFG), the agents are assumed to be insignificant, they do not realize their effect on the population level and this may result in a phenomenon coined as the Tragedy of the Commons by the economists. However, in…

Optimization and Control · Mathematics 2024-09-13 Gokce Dayanikli , Mathieu Lauriere

With the emergence of decentralized finance, new trading mechanisms called Automated Market Makers have appeared. The most popular Automated Market Makers are Constant Function Market Makers. They have been studied both theoretically and…

Trading and Market Microstructure · Quantitative Finance 2023-11-21 Philippe Bergault , Louis Bertucci , David Bouba , Olivier Guéant

Mean-field games have been studied under the assumption of very large number of players. For such large systems, the basic idea consists to approximate large games by a stylized game model with a continuum of players. The approach has been…

Computer Science and Game Theory · Computer Science 2014-04-08 Hamidou Tembine

This paper considers mean field games in a multi-agent Markov decision process (MDP) framework. Each player has a continuum state and binary action. By active control, a player can bring its state to a resetting point. All players are…

Optimization and Control · Mathematics 2017-01-25 Minyi Huang , Yan Ma

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

Recent techniques based on Mean Field Games (MFGs) allow the scalable analysis of multi-player games with many similar, rational agents. However, standard MFGs remain limited to homogeneous players that weakly influence each other, and…

Computer Science and Game Theory · Computer Science 2023-12-19 Kai Cui , Gökçe Dayanıklı , Mathieu Laurière , Matthieu Geist , Olivier Pietquin , Heinz Koeppl

Motivated by recent empirical findings on the periodic phenomenon of aggregated market volumes in equity markets, we aim to understand the causes and consequences of periodic trading activities through a game-theoretic perspective,…

Mathematical Finance · Quantitative Finance 2024-08-20 Yufan Chen , Lan Wu , Renyuan Xu , Ruixun Zhang

Mean field games were introduced by J-M.Lasry and P-L. Lions in the mathematical community, and independently by M. Huang and co-workers in the engineering community, to deal with optimization problems when the number of agents becomes very…

Physics and Society · Physics 2015-10-28 Igor Swiecicki , Thierry Gobron , Denis Ullmo

We find the equilibrium contract that an automated market maker (AMM) offers to their strategic liquidity providers (LPs) in order to maximize the order flow that gets processed by the venue. Our model is formulated as a leader-follower…

Trading and Market Microstructure · Quantitative Finance 2025-03-31 Alif Aqsha , Philippe Bergault , Leandro Sánchez-Betancourt

The integration of distributed energy resources (DERs) into wholesale energy markets can greatly enhance grid flexibility, improve market efficiency, and contribute to a more sustainable energy future. As DERs -- such as solar PV panels and…

Systems and Control · Electrical Eng. & Systems 2025-07-08 Jun He , Andrew L. Liu

We present a new combined \textit{mean field control game} (MFCG) problem which can be interpreted as a competitive game between collaborating groups and its solution as a Nash equilibrium between groups. Players coordinate their strategies…

Optimization and Control · Mathematics 2023-02-16 Andrea Angiuli , Nils Detering , Jean-Pierre Fouque , Mathieu Lauriere , Jimin Lin

We consider a class of mean field games in which the agents interact through both their states and controls, and we focus on situations in which a generic agent tries to adjust her speed (control) to an average speed (the average is made in…

Analysis of PDEs · Mathematics 2020-03-10 Y Achdou , Z Kobeissi

In a game theoretic framework, we study energy markets with a continuum of homogenous producers who produce energy from an exhaustible resource such as oil. Each producer simultaneously optimizes production rate that drives her revenues, as…

Economics · Quantitative Finance 2017-10-17 Michael Ludkovski , Xuwei Yang

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