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arxiv: 1009.0932 · v8 · pith:CFNSYFS5new · submitted 2010-09-05 · 🧮 math.OC · cs.SY· math.PR· q-fin.GN

On the Multi-Dimensional Controller and Stopper Games

classification 🧮 math.OC cs.SYmath.PRq-fin.GN
keywords gamecontrollermulti-dimensionalprocessstatevalueaffectsappropriate
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We consider a zero-sum stochastic differential controller-and-stopper game in which the state process is a controlled diffusion evolving in a multi-dimensional Euclidean space. In this game, the controller affects both the drift and the volatility terms of the state process. Under appropriate conditions, we show that the game has a value and the value function is the unique viscosity solution to an obstacle problem for a Hamilton-Jacobi-Bellman equation.

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