Optimal tactics in community pension model for defined benefit pension plans.
Against the backdrop of an aging population, community pension initiatives are gaining traction, permeating societal landscapes. This study delves into the equilibrium strategy within the context of a defined benefit pension plan, employing a differential game framework with a community pension mode...
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| Format: | Article |
| Language: | English |
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Public Library of Science (PLoS)
2025-01-01
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| Series: | PLoS ONE |
| Online Access: | https://doi.org/10.1371/journal.pone.0300766 |
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| _version_ | 1841555611396866048 |
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| author | Jun Wang Chunli Cui Tian Tian |
| author_facet | Jun Wang Chunli Cui Tian Tian |
| author_sort | Jun Wang |
| collection | DOAJ |
| description | Against the backdrop of an aging population, community pension initiatives are gaining traction, permeating societal landscapes. This study delves into the equilibrium strategy within the context of a defined benefit pension plan, employing a differential game framework with a community pension model. Hence, the model entails the company's controls over investment rates in funds, juxtaposed with employees' inclination towards a greater proportion of community pension allocation in said funds. To tackle this issue, a stochastic differential game model for pensions under a community pension scheme is formulated. Leveraging the Hamilton-Jacobi-Bellman equation, we derive the Markov Perfect Nash Equilibrium solution and optimal portfolio. Through numerical simulations, we analyze the impact of varying risk aversion levels across different parameter values on equilibrium ratios, thereby offering insights into managerial risk tolerance. |
| format | Article |
| id | doaj-art-841dd4d046de4da8b09c96a3ffc7c4b2 |
| institution | Kabale University |
| issn | 1932-6203 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | Public Library of Science (PLoS) |
| record_format | Article |
| series | PLoS ONE |
| spelling | doaj-art-841dd4d046de4da8b09c96a3ffc7c4b22025-01-08T05:31:51ZengPublic Library of Science (PLoS)PLoS ONE1932-62032025-01-01201e030076610.1371/journal.pone.0300766Optimal tactics in community pension model for defined benefit pension plans.Jun WangChunli CuiTian TianAgainst the backdrop of an aging population, community pension initiatives are gaining traction, permeating societal landscapes. This study delves into the equilibrium strategy within the context of a defined benefit pension plan, employing a differential game framework with a community pension model. Hence, the model entails the company's controls over investment rates in funds, juxtaposed with employees' inclination towards a greater proportion of community pension allocation in said funds. To tackle this issue, a stochastic differential game model for pensions under a community pension scheme is formulated. Leveraging the Hamilton-Jacobi-Bellman equation, we derive the Markov Perfect Nash Equilibrium solution and optimal portfolio. Through numerical simulations, we analyze the impact of varying risk aversion levels across different parameter values on equilibrium ratios, thereby offering insights into managerial risk tolerance.https://doi.org/10.1371/journal.pone.0300766 |
| spellingShingle | Jun Wang Chunli Cui Tian Tian Optimal tactics in community pension model for defined benefit pension plans. PLoS ONE |
| title | Optimal tactics in community pension model for defined benefit pension plans. |
| title_full | Optimal tactics in community pension model for defined benefit pension plans. |
| title_fullStr | Optimal tactics in community pension model for defined benefit pension plans. |
| title_full_unstemmed | Optimal tactics in community pension model for defined benefit pension plans. |
| title_short | Optimal tactics in community pension model for defined benefit pension plans. |
| title_sort | optimal tactics in community pension model for defined benefit pension plans |
| url | https://doi.org/10.1371/journal.pone.0300766 |
| work_keys_str_mv | AT junwang optimaltacticsincommunitypensionmodelfordefinedbenefitpensionplans AT chunlicui optimaltacticsincommunitypensionmodelfordefinedbenefitpensionplans AT tiantian optimaltacticsincommunitypensionmodelfordefinedbenefitpensionplans |