Linear-quadratic mixed Stackelberg-zero-sum game for mean-field regime switching system

Fuente: arXiv
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Main Authors: Huang, Pengyan, Li, Na, Xu, Zuo Quan, Zheng, Harry
Format: Preprint
Published: 2026
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author Huang, Pengyan
Li, Na
Xu, Zuo Quan
Zheng, Harry
author_facet Huang, Pengyan
Li, Na
Xu, Zuo Quan
Zheng, Harry
contents Motivated by a product pricing problem, a linear-quadratic Stackelberg differential game for a regime switching system involving one leader and two followers is studied. The two followers engage in a zero-sum differential game, and both the state system and the cost functional incorporate a conditional mean-field term. Applying continuation method and induction method, we first establish the existence and uniqueness of a conditional mean-field forward-backward stochastic differential equation with Markovian switching. Based on it, we prove the unique solvability of Hamiltonian systems for the two followers and the leader. Moreover, utilizing stochastic maximum principle, decoupling approach and optimal filtering technique, the optimal feedback strategies of two followers and leader are obtained. Employing the theoretical results, we solve a product pricing problem with some numerical simulations.
format Preprint
id arxiv_https___arxiv_org_abs_2603_27208
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle Linear-quadratic mixed Stackelberg-zero-sum game for mean-field regime switching system
Huang, Pengyan
Li, Na
Xu, Zuo Quan
Zheng, Harry
Optimization and Control
Motivated by a product pricing problem, a linear-quadratic Stackelberg differential game for a regime switching system involving one leader and two followers is studied. The two followers engage in a zero-sum differential game, and both the state system and the cost functional incorporate a conditional mean-field term. Applying continuation method and induction method, we first establish the existence and uniqueness of a conditional mean-field forward-backward stochastic differential equation with Markovian switching. Based on it, we prove the unique solvability of Hamiltonian systems for the two followers and the leader. Moreover, utilizing stochastic maximum principle, decoupling approach and optimal filtering technique, the optimal feedback strategies of two followers and leader are obtained. Employing the theoretical results, we solve a product pricing problem with some numerical simulations.
title Linear-quadratic mixed Stackelberg-zero-sum game for mean-field regime switching system
topic Optimization and Control
url https://arxiv.org/abs/2603.27208