Two-Player Nonzero-Sum Stochastic Differential Games with Switching Controls

In this paper, a two-player nonzero-sum stochastic differential game problem is studied with both players using <i>switching controls</i>. A verification theorem associated with a set of variational inequalities is established as a <i>sufficient criterion</i> for Nash equilib...

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Main Authors: Yongxin Liu, Hui Min
Format: Article
Language:English
Published: MDPI AG 2024-12-01
Series:Mathematics
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Online Access:https://www.mdpi.com/2227-7390/12/24/3976
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author Yongxin Liu
Hui Min
author_facet Yongxin Liu
Hui Min
author_sort Yongxin Liu
collection DOAJ
description In this paper, a two-player nonzero-sum stochastic differential game problem is studied with both players using <i>switching controls</i>. A verification theorem associated with a set of variational inequalities is established as a <i>sufficient criterion</i> for Nash equilibrium, in which the equilibrium switching strategies for the two players, indicating <i>when</i> and <i>where</i> it is optimal to switch, are characterized in terms of the so-called <i>switching regions</i> and <i>continuation regions</i>. The verification theorem is proved in a <i>piecewise</i> way along the sequence of total decision times of the two players. Then, some detailed explanations are also provided to illustrate the idea why the conditions are imposed in the verification theorem.
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spelling doaj-art-9cb96653d3354b2eafe5d099a7891af62024-12-27T14:38:11ZengMDPI AGMathematics2227-73902024-12-011224397610.3390/math12243976Two-Player Nonzero-Sum Stochastic Differential Games with Switching ControlsYongxin Liu0Hui Min1School of Statistics and Data Science, Nanjing Audit University, Nanjing 211815, ChinaSchool of Mathematics, Statistics and Mechanics, Beijing University of Technology, Beijing 100124, ChinaIn this paper, a two-player nonzero-sum stochastic differential game problem is studied with both players using <i>switching controls</i>. A verification theorem associated with a set of variational inequalities is established as a <i>sufficient criterion</i> for Nash equilibrium, in which the equilibrium switching strategies for the two players, indicating <i>when</i> and <i>where</i> it is optimal to switch, are characterized in terms of the so-called <i>switching regions</i> and <i>continuation regions</i>. The verification theorem is proved in a <i>piecewise</i> way along the sequence of total decision times of the two players. Then, some detailed explanations are also provided to illustrate the idea why the conditions are imposed in the verification theorem.https://www.mdpi.com/2227-7390/12/24/3976stochastic differential gameswitching controlverification theoremvariational inequalitysufficient condition
spellingShingle Yongxin Liu
Hui Min
Two-Player Nonzero-Sum Stochastic Differential Games with Switching Controls
Mathematics
stochastic differential game
switching control
verification theorem
variational inequality
sufficient condition
title Two-Player Nonzero-Sum Stochastic Differential Games with Switching Controls
title_full Two-Player Nonzero-Sum Stochastic Differential Games with Switching Controls
title_fullStr Two-Player Nonzero-Sum Stochastic Differential Games with Switching Controls
title_full_unstemmed Two-Player Nonzero-Sum Stochastic Differential Games with Switching Controls
title_short Two-Player Nonzero-Sum Stochastic Differential Games with Switching Controls
title_sort two player nonzero sum stochastic differential games with switching controls
topic stochastic differential game
switching control
verification theorem
variational inequality
sufficient condition
url https://www.mdpi.com/2227-7390/12/24/3976
work_keys_str_mv AT yongxinliu twoplayernonzerosumstochasticdifferentialgameswithswitchingcontrols
AT huimin twoplayernonzerosumstochasticdifferentialgameswithswitchingcontrols