In this paper, we investigate the mean field games of N agents who are weakly coupled via the empirical measures. The underlying dynamics of the representative agent is assumed to be a controlled nonlinear diffusion process with variable coefficients. We show that individual optimal strategies based on any solution of the main consistency equation for the backward-forward mean filed game model represent a 1/N-Nash equilibrium for approximating systems of N agents.

Original languageEnglish
Pages (from-to)208-230
Number of pages23
JournalDynamic Games and Applications
Volume4
Issue number2
DOIs
StatePublished - 1 Jan 2014

    Scopus subject areas

  • Statistics and Probability
  • Computer Science Applications
  • Computer Graphics and Computer-Aided Design
  • Computational Theory and Mathematics
  • Computational Mathematics
  • Applied Mathematics

    Research areas

  • Dynamic law of large numbers, Forward-backward system, Kinetic equation, Nonlinear diffusion, Rates of convergence, Tagged particle, ε{lunate}-Nash equilibrium

ID: 51531589