Mean field games for production output adjustment with noisy sticky prices
This paper investigates mean field games for dynamic production competition. We first introduce a market of many firms with the sticky price and adjustment costs, where the price is disturbed by a Wiener process. By solving forward-backward stochastic differential equations subject to consistent mean field approximations, a set of decentralized strategies is obtained and further shown to be an e-Nash equilibrium.
|Keywords||Mean field game, Nash equilibrium, noisy sticky price, production output adjustment|
|Conference||30th Chinese Control and Decision Conference, CCDC 2018|
Wang, B. (Bingchang), & Huang, M. (2018). Mean field games for production output adjustment with noisy sticky prices. In Proceedings of the 30th Chinese Control and Decision Conference, CCDC 2018 (pp. 3185–3190). doi:10.1109/CCDC.2018.8407672