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arXiv · 2204.03300

Approximating Nash Equilibrium for Production Control with Sticky Price

Chunmei Jiang·Tongqing Li·Jie Yu
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Abstract

We study a 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 her expectation of cumulative net profit coupled with each other through price processes. By solving the limiting control problem and a fixed-point problem, we construct an explicit approximating Nash equilibrium when the number of firms grows large.

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Chunmei Jiang, Tongqing Li, Jie Yu. 2022-04-07. Approximating Nash Equilibrium for Production Control with Sticky Price. https://arxiv.org/abs/2204.03300

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