Abstract:
This paper presents an application of mean field games to dynamic production competition. We first introduce a market of a large number of agents (firms) with sticky pric...Show MoreMetadata
Abstract:
This paper presents an application of mean field games to dynamic production competition. We first introduce a market of a large number of agents (firms) with sticky prices and adjustment costs. The cost functional of each agent has indefinite state weights. By solving a limiting optimal control problem subject to consistent mean field approximations, a set of decentralized strategies is obtained and further shown to be an ε -Nash equilibrium.
Published in: 2015 54th IEEE Conference on Decision and Control (CDC)
Date of Conference: 15-18 December 2015
Date Added to IEEE Xplore: 11 February 2016
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