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Main Authors: Ignazio, Vincenzo, Ricciardi, Michele
Format: Preprint
Published: 2024
Subjects:
Online Access:https://arxiv.org/abs/2407.20826
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author Ignazio, Vincenzo
Ricciardi, Michele
author_facet Ignazio, Vincenzo
Ricciardi, Michele
contents Mean Field Games (MFG) theory describes strategic interactions in differential games with a large number of small and indistinguishable players. Traditionally, the players' control impacts only the drift term in the system's dynamics, leaving the diffusion term uncontrolled. This paper explores a novel scenario where agents control both drift and diffusion. This leads to a fully non-linear MFG system with a fully non-linear Hamilton-Jacobi-Bellman equation. We use viscosity arguments to prove existence of solutions for the HJB equation, and then we adapt and extend a result from Krylov to prove a $\mathcal C^3$ regularity for $u$ in the space variable. This allows us to prove a well-posedness result for the MFG system.
format Preprint
id arxiv_https___arxiv_org_abs_2407_20826
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle A second-order Mean Field Games model with controlled diffusion
Ignazio, Vincenzo
Ricciardi, Michele
Analysis of PDEs
Mean Field Games (MFG) theory describes strategic interactions in differential games with a large number of small and indistinguishable players. Traditionally, the players' control impacts only the drift term in the system's dynamics, leaving the diffusion term uncontrolled. This paper explores a novel scenario where agents control both drift and diffusion. This leads to a fully non-linear MFG system with a fully non-linear Hamilton-Jacobi-Bellman equation. We use viscosity arguments to prove existence of solutions for the HJB equation, and then we adapt and extend a result from Krylov to prove a $\mathcal C^3$ regularity for $u$ in the space variable. This allows us to prove a well-posedness result for the MFG system.
title A second-order Mean Field Games model with controlled diffusion
topic Analysis of PDEs
url https://arxiv.org/abs/2407.20826