Mean Field Control and Finite Agent Approximation for Regime-Switching Jump Diffusions

Erhan Bayraktar, Alekos Cecchin, Prakash Chakraborty

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Abstract

We consider a jump-diffusion mean field control problem with regime switching in the state dynamics. The corresponding value function is characterized as the unique viscosity solution of a HJB master equation on the space of probability measures. Using this characterization, we prove that the value function, which is not regular, is the limit of a finite agent centralized optimal control problem as the number of agents go to infinity, with an explicit convergence rate. Assuming in addition that the value function is smooth, we establish a quantitative propagation of chaos result for the optimal trajectory of agent states.

Original languageEnglish (US)
Article number36
JournalApplied Mathematics and Optimization
Volume88
Issue number2
DOIs
StatePublished - Oct 2023

All Science Journal Classification (ASJC) codes

  • Control and Optimization
  • Applied Mathematics

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