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Viscosity solutions to HJB equations associated with optimal control problem for McKean-Vlasov SDEs

2023/10/17 by Jinghai Shao, Shao, Jinghai
Economics, Econometrics and Finance · Mathematics · #35Q93 #49L25 #60H10 #FOS: Mathematics #Geometric Analysis and Curvature Flows #Navier-Stokes equation solutions #Optimization and Control (math.OC) #Probability (math.PR) #Stochastic processes and financial applications

paper · pdf · doi:10.48550/arxiv.2310.11474

openalex publication_date 2023/10/17 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28

Abstract

This work concerns the optimal control problem for McKean-Vlasov SDEs. In order to characterize the value function, we develop the viscosity solution theory for Hamilton-Jacobi-Bellman (HJB) equations on the Wasserstein space using Mortensen's derivative. In particular, a comparison principle for viscosity solution is established. Our approach is based on Borwein-Preiss variational principle to overcome the loss of compactness for bounded sets in the Wasserstein space.

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