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arXiv · 1211.4991

Viscosity Solutions of Systems of Variational Inequalities with Interconnected Bilateral Obstacles

Boualem Djehiche·Said Hamadene·Marie Amelie Morlais
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Abstract

We study a general class of nonlinear second-order variational inequalities with interconnected bilateral obstacles, related to a multiple modes switching game. Under rather weak assumptions, using systems of penalized unilateral backward SDEs, we construct a continuous viscosity solution of polynomial growth. Moreover, we establish a comparison result which in turn yields uniqueness of the solution.

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Boualem Djehiche, Said Hamadene, Marie Amelie Morlais. 2012-11-21. Viscosity Solutions of Systems of Variational Inequalities with Interconnected Bilateral Obstacles. https://arxiv.org/abs/1211.4991

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