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Team Games Optimality Conditions of Distributed Stochastic Differential Decision Systems with Decentralized Noisy Information Structures

2013/04/11 by Charalambos D. Charalambous, Charalambous, Charalambos D., N. U. Ahmed +1
Business, Management and Accounting · Earth and Planetary Sciences · Engineering · #91A06 #91A12 #91A15 #Advanced Research in Systems and Signal Processing #Aquatic and Environmental Studies #Economic and Technological Systems Analysis #FOS: Mathematics #Optimization and Control (math.OC)

paper · pdf · doi:10.48550/arxiv.1304.3246

openalex publication_date 2013/04/11 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28

Abstract

We consider a team game reward, and we derive a stochastic Pontryagin's maximum principle for distributed stochastic differential systems with decentralized noisy information structures. Our methodology utilizes the semi martingale representation theorem, variational methods, and backward stochastic differential equations. Furthermore, we derive necessary and sufficient optimality conditions that characterize team and person-by-person optimality of decentralized strategies. Finally, we apply the stochastic maximum principle to several examples from the application areas of communications, filtering and control.

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