Mean field games of major-minor agents with recursive functionals

Fuente: arXiv
Saved in:
Bibliographic Details
Main Authors: Huang, Jianhui, Li, Wenqiang, Zheng, Harry
Format: Preprint
Published: 2024
Subjects:
Online Access:
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1866913613622542336
author Huang, Jianhui
Li, Wenqiang
Zheng, Harry
author_facet Huang, Jianhui
Li, Wenqiang
Zheng, Harry
contents This paper investigates a novel class of mean field games involving a major agent and numerous minor agents, where the agents' functionals are recursive with nonlinear backward stochastic differential equation (BSDE) representations. We term these games "recursive major-minor" (RMM) problems. Our RMM modeling is quite general, as it employs empirical (state, control) averages to define the weak couplings in both the functionals and dynamics of all agents, regardless of their status as major or minor. We construct an auxiliary limiting problem of the RMM by a novel unified structural scheme combining a bilateral perturbation with a mixed hierarchical recomposition. This scheme has its own merits as it can be applied to analyze more complex coupling structures than those in the current RMM. Subsequently, we derive the corresponding consistency condition and explore asymptotic RMM equilibria. Additionally, we examine the RMM problem in specific linear-quadratic settings for illustrative purposes.
format Preprint
id arxiv_https___arxiv_org_abs_2412_11433
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Mean field games of major-minor agents with recursive functionals
Huang, Jianhui
Li, Wenqiang
Zheng, Harry
Optimization and Control
93E20, 60H10, 60K35
This paper investigates a novel class of mean field games involving a major agent and numerous minor agents, where the agents' functionals are recursive with nonlinear backward stochastic differential equation (BSDE) representations. We term these games "recursive major-minor" (RMM) problems. Our RMM modeling is quite general, as it employs empirical (state, control) averages to define the weak couplings in both the functionals and dynamics of all agents, regardless of their status as major or minor. We construct an auxiliary limiting problem of the RMM by a novel unified structural scheme combining a bilateral perturbation with a mixed hierarchical recomposition. This scheme has its own merits as it can be applied to analyze more complex coupling structures than those in the current RMM. Subsequently, we derive the corresponding consistency condition and explore asymptotic RMM equilibria. Additionally, we examine the RMM problem in specific linear-quadratic settings for illustrative purposes.
title Mean field games of major-minor agents with recursive functionals
topic Optimization and Control
93E20, 60H10, 60K35
url https://arxiv.org/abs/2412.11433