The Cooperative Mean Field Game for Production Control with Sticky Price
Lijun Bo , Tongqing Li
Communications in Mathematics and Statistics ›› : 1 -18.
The Cooperative Mean Field Game for Production Control with Sticky Price
We study a cooperative mean field game problem arising from the production control for multiple firms with price stickiness in the commodity market. The price dynamics for each firm is described as a controlled jump-diffusion process with mean-field interaction. Each firm aims to maximize the so-called social rewards which is defined by the average of individual rewards for all firms. By solving the limiting control problem for the representative firm and an associated fixed-point problem, we construct an explicit approximating optimal strategy when the number of firms grows large.
Production control / Sticky price / Social rewards / Cooperative mean field game
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