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Autores principales: Aksamit, Anna, Das, Kaustav, Guo, Ivan, Nam, Kihun, Zhou, Zhou
Formato: Preprint
Publicado: 2025
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Acceso en línea:https://arxiv.org/abs/2503.06967
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author Aksamit, Anna
Das, Kaustav
Guo, Ivan
Nam, Kihun
Zhou, Zhou
author_facet Aksamit, Anna
Das, Kaustav
Guo, Ivan
Nam, Kihun
Zhou, Zhou
contents We consider a continuum of carbon-emitting firms who seek to maximise their stock price, and a regulator (e.g., Government) who wishes for the economy to flourish, whilst simultaneously punishing firms who behave non-green. Interpreting the regulator as a major player and the firms as the minor players, we model this setting through a mean field game with major and minor players. We extend the stochastic maximum principle derived by Carmona & Zhu [A probabilistic approach to mean field games with major and minor players. Annals of Applied Probability, 2016, 94, 745--788] by relaxing the assumptions on the forms of the minimisers for the Hamiltonians, allowing them to depend on more arguments. This allows the major and representative minor player to interact in a more natural fashion, thereby permitting us to consider more realistic models for our green and sustainable finance problem. Through our stochastic maximum principle, we derive explicit Nash equilibria for a number of examples.
format Preprint
id arxiv_https___arxiv_org_abs_2503_06967
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Switching to a Green and sustainable finance setting: a mean field game approach
Aksamit, Anna
Das, Kaustav
Guo, Ivan
Nam, Kihun
Zhou, Zhou
Probability
91A15, 91A23
We consider a continuum of carbon-emitting firms who seek to maximise their stock price, and a regulator (e.g., Government) who wishes for the economy to flourish, whilst simultaneously punishing firms who behave non-green. Interpreting the regulator as a major player and the firms as the minor players, we model this setting through a mean field game with major and minor players. We extend the stochastic maximum principle derived by Carmona & Zhu [A probabilistic approach to mean field games with major and minor players. Annals of Applied Probability, 2016, 94, 745--788] by relaxing the assumptions on the forms of the minimisers for the Hamiltonians, allowing them to depend on more arguments. This allows the major and representative minor player to interact in a more natural fashion, thereby permitting us to consider more realistic models for our green and sustainable finance problem. Through our stochastic maximum principle, we derive explicit Nash equilibria for a number of examples.
title Switching to a Green and sustainable finance setting: a mean field game approach
topic Probability
91A15, 91A23
url https://arxiv.org/abs/2503.06967