A Maximum Principle approach to deterministic Mean Field Games of Control with Absorption

Paulwin Graewe, Ulrich Horst and Ronnie Sircar

Papers from arXiv.org

Abstract: We study a class of deterministic mean field games on finite and infinite time horizons arising in models of optimal exploitation of exhaustible resources. The main characteristic of our game is an absorption constraint on the players' state process. As a result of the state constraint the optimal time of absorption becomes part of the equilibrium. This requires a novel approach when applying Pontyagin's maximum principle. We prove the existence and uniqueness of equilibria and solve the infinite horizon models in closed form. As players may drop out of the game over time, equilibrium production rates need not be monotone nor smooth.

Date: 2021-04
New Economics Papers: this item is included in nep-gth
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://arxiv.org/pdf/2104.06152 Latest version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2104.06152

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators (help@arxiv.org).