Indefinite Linear-Quadratic Partially Observed Mean-Field Game

Fuente: arXiv
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Main Authors: Chen, Tian, Nie, Tianyang, Wu, Zhen
Format: Preprint
Published: 2025
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author Chen, Tian
Nie, Tianyang
Wu, Zhen
author_facet Chen, Tian
Nie, Tianyang
Wu, Zhen
contents This paper investigates an indefinite linear-quadratic partially observed mean-field game with common noise, incorporating both state-average and control-average effects. In our model, each agent's state is observed through both individual and public observations, which are modeled as general stochastic processes rather than Brownian motions. {It is noteworthy that} the weighting matrices in the cost functional are allowed to be indefinite. We derive the optimal decentralized strategies using the Hamiltonian approach and establish the well-posedness of the resulting Hamiltonian system by employing a relaxed compensator. The associated consistency condition and the feedback representation of decentralized strategies are also established. Furthermore, we demonstrate that the set of decentralized strategies form an $\varepsilon$-Nash equilibrium. As an application, we solve a mean-variance portfolio selection problem.
format Preprint
id arxiv_https___arxiv_org_abs_2508_01568
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Indefinite Linear-Quadratic Partially Observed Mean-Field Game
Chen, Tian
Nie, Tianyang
Wu, Zhen
Optimization and Control
91A16, 49N10, 91A10, 93C41
This paper investigates an indefinite linear-quadratic partially observed mean-field game with common noise, incorporating both state-average and control-average effects. In our model, each agent's state is observed through both individual and public observations, which are modeled as general stochastic processes rather than Brownian motions. {It is noteworthy that} the weighting matrices in the cost functional are allowed to be indefinite. We derive the optimal decentralized strategies using the Hamiltonian approach and establish the well-posedness of the resulting Hamiltonian system by employing a relaxed compensator. The associated consistency condition and the feedback representation of decentralized strategies are also established. Furthermore, we demonstrate that the set of decentralized strategies form an $\varepsilon$-Nash equilibrium. As an application, we solve a mean-variance portfolio selection problem.
title Indefinite Linear-Quadratic Partially Observed Mean-Field Game
topic Optimization and Control
91A16, 49N10, 91A10, 93C41
url https://arxiv.org/abs/2508.01568