Finite-time horizon, stopper vs. singular-controller games on the half-line

Fuente: arXiv
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Hauptverfasser: Bovo, Andrea, De Angelis, Tiziano
Format: Preprint
Veröffentlicht: 2024
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author Bovo, Andrea
De Angelis, Tiziano
author_facet Bovo, Andrea
De Angelis, Tiziano
contents We prove existence of a value for two-player zero-sum stopper vs. singular-controller games on finite-time horizon, when the underlying dynamics is one-dimensional, diffusive and bound to evolve in $[0,\infty)$. We show that the value is the maximal solution of a variational inequality with both obstacle and gradient constraint and satisfying a Dirichlet boundary condition at $[0,T)\times\{0\}$. Moreover, we obtain an optimal strategy for the stopper. In order to achieve our goals, we rely on new probabilistic methods, yielding gradient bounds and equi-continuity for the solutions of penalised partial differential equations that approximate the variational inequality.
format Preprint
id arxiv_https___arxiv_org_abs_2409_06049
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Finite-time horizon, stopper vs. singular-controller games on the half-line
Bovo, Andrea
De Angelis, Tiziano
Optimization and Control
Analysis of PDEs
Probability
91A05, 91A15, 60G40, 93E20, 49J40
We prove existence of a value for two-player zero-sum stopper vs. singular-controller games on finite-time horizon, when the underlying dynamics is one-dimensional, diffusive and bound to evolve in $[0,\infty)$. We show that the value is the maximal solution of a variational inequality with both obstacle and gradient constraint and satisfying a Dirichlet boundary condition at $[0,T)\times\{0\}$. Moreover, we obtain an optimal strategy for the stopper. In order to achieve our goals, we rely on new probabilistic methods, yielding gradient bounds and equi-continuity for the solutions of penalised partial differential equations that approximate the variational inequality.
title Finite-time horizon, stopper vs. singular-controller games on the half-line
topic Optimization and Control
Analysis of PDEs
Probability
91A05, 91A15, 60G40, 93E20, 49J40
url https://arxiv.org/abs/2409.06049