Linear-Quadratic Partially Observed Mean Field Stackelberg Stochastic Differential Game with Applications

Fuente: arXiv
Saved in:
Bibliographic Details
Main Authors: Si, Yu, Zheng, Yueyang, Shi, Jingtao
Format: Preprint
Published: 2025
Subjects:
Online Access:
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1866918234924515328
author Si, Yu
Zheng, Yueyang
Shi, Jingtao
author_facet Si, Yu
Zheng, Yueyang
Shi, Jingtao
contents This paper is concerned with a linear-quadratic partially observed mean field Stackelberg stochastic differential game, which contains a leader and a large number of followers. Specifically, the followers confront a large-population Nash game subsequent to the leader's initial announcement of his strategy. In turn, the leader optimizes his own cost functional, taking into account the anticipated reactions of the followers. The state equations of both the leader and the followers are general stochastic differential equations, where the drift terms contain both the state average term and the state expectation term. However, the followers' state average terms enter into the drift term of the leader's state equation and the state expectation term of the leader enters into the state equation of the follower, reflecting the mutual influence between the leader and the followers. By utilizing the techniques of state decomposition and backward separation principle, we deduce the open-loop adapted decentralized strategies and feedback decentralized strategies of this leader-followers system, and demonstrate that the decentralized strategies are the corresponding $\varepsilon$-Stackelberg-Nash equilibrium. Finally, we apply the theoretical result to a product planning problem with sticky prices.
format Preprint
id arxiv_https___arxiv_org_abs_2503_15803
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Linear-Quadratic Partially Observed Mean Field Stackelberg Stochastic Differential Game with Applications
Si, Yu
Zheng, Yueyang
Shi, Jingtao
Optimization and Control
93E20, 60H10, 49K45, 49N70, 91A23
This paper is concerned with a linear-quadratic partially observed mean field Stackelberg stochastic differential game, which contains a leader and a large number of followers. Specifically, the followers confront a large-population Nash game subsequent to the leader's initial announcement of his strategy. In turn, the leader optimizes his own cost functional, taking into account the anticipated reactions of the followers. The state equations of both the leader and the followers are general stochastic differential equations, where the drift terms contain both the state average term and the state expectation term. However, the followers' state average terms enter into the drift term of the leader's state equation and the state expectation term of the leader enters into the state equation of the follower, reflecting the mutual influence between the leader and the followers. By utilizing the techniques of state decomposition and backward separation principle, we deduce the open-loop adapted decentralized strategies and feedback decentralized strategies of this leader-followers system, and demonstrate that the decentralized strategies are the corresponding $\varepsilon$-Stackelberg-Nash equilibrium. Finally, we apply the theoretical result to a product planning problem with sticky prices.
title Linear-Quadratic Partially Observed Mean Field Stackelberg Stochastic Differential Game with Applications
topic Optimization and Control
93E20, 60H10, 49K45, 49N70, 91A23
url https://arxiv.org/abs/2503.15803