Nash Equilibria of Noncooperative/Mixed Differential Games with Density Constraints in Infinite Dimensions

Fuente: arXiv
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Auteurs principaux: Gou, Zhun, Huang, Nan-Jing, Kang, Jian-Hao, Yao, Jen-Chih
Format: Preprint
Publié: 2025
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author Gou, Zhun
Huang, Nan-Jing
Kang, Jian-Hao
Yao, Jen-Chih
author_facet Gou, Zhun
Huang, Nan-Jing
Kang, Jian-Hao
Yao, Jen-Chih
contents Motivated by Cournot models, this paper proposes novel models of the noncooperative and cooperative differential games with density constraints in infinite dimensions, where markets consist of infinite firms and demand dynamics are governed by controlled differential equations. Markets engage in noncooperative competition with each other, while firms within each market engage in noncooperative or cooperative games. The main problems are to find the noncooperative Nash equilibrium (NNE) of the noncooperative differential game and the mixed Nash equilibrium (MNE) of the mixed noncooperative and cooperative differential game. Moreover, fundamental relationship is established between noncooperative/mixed differential game with density constraints and infinite-dimensional differential variational inequalities with density constraints. By variational analysis, it is proved under two conditions with certain symmetry that both of the two equilibrium problems can be reduced to solving systems of finite-dimensional projection equations with integral constraints by iterative computational methods. Crucially, the two conditions with certain symmetry, ensuring the uniqueness of the NNE and the MNE, provide theoretical foundations for strategic decision making regarding competitive versus cooperative market behaviors. Finally, the theoretical framework is validated through numerical simulations demonstrating the efficacy of our results.
format Preprint
id arxiv_https___arxiv_org_abs_2508_07623
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Nash Equilibria of Noncooperative/Mixed Differential Games with Density Constraints in Infinite Dimensions
Gou, Zhun
Huang, Nan-Jing
Kang, Jian-Hao
Yao, Jen-Chih
Optimization and Control
Motivated by Cournot models, this paper proposes novel models of the noncooperative and cooperative differential games with density constraints in infinite dimensions, where markets consist of infinite firms and demand dynamics are governed by controlled differential equations. Markets engage in noncooperative competition with each other, while firms within each market engage in noncooperative or cooperative games. The main problems are to find the noncooperative Nash equilibrium (NNE) of the noncooperative differential game and the mixed Nash equilibrium (MNE) of the mixed noncooperative and cooperative differential game. Moreover, fundamental relationship is established between noncooperative/mixed differential game with density constraints and infinite-dimensional differential variational inequalities with density constraints. By variational analysis, it is proved under two conditions with certain symmetry that both of the two equilibrium problems can be reduced to solving systems of finite-dimensional projection equations with integral constraints by iterative computational methods. Crucially, the two conditions with certain symmetry, ensuring the uniqueness of the NNE and the MNE, provide theoretical foundations for strategic decision making regarding competitive versus cooperative market behaviors. Finally, the theoretical framework is validated through numerical simulations demonstrating the efficacy of our results.
title Nash Equilibria of Noncooperative/Mixed Differential Games with Density Constraints in Infinite Dimensions
topic Optimization and Control
url https://arxiv.org/abs/2508.07623