Master Equation for Discrete-Time Stackelberg Mean Field Games with a Single Leader

Deepanshu Vasal*, Randall Berry

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contribution

3 Scopus citations

Abstract

In this paper, we consider a discrete-time Stack-elberg mean field game with a leader and an infinite number of followers. The leader and the followers each observe types privately that evolve as conditionally independent controlled Markov processes. The leader commits to a dynamic policy and the followers best respond to that policy and each other. Knowing that the followers would play a mean field game based on her policy, the leader chooses a policy that maximizes her reward. We refer to the resulting outcome as a Stackelberg mean field equilibrium (SMFE). In this paper, we provide a master equation of this game that allows one to compute all SMFE. Based on our framework, we consider two numerical examples. First, we consider an epidemic model where the followers get infected based on the mean field population. The leader chooses subsidies for a vaccine to maximize social welfare and minimize vaccination costs. In the second example, we consider a technology adoption game where the followers decide to adopt a technology or a product and the leader decides the cost of one product that maximizes his returns, which are proportional to the people adopting that technology.

Original languageEnglish (US)
Title of host publication2022 IEEE 61st Conference on Decision and Control, CDC 2022
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages5529-5535
Number of pages7
ISBN (Electronic)9781665467612
DOIs
StatePublished - 2022
Event61st IEEE Conference on Decision and Control, CDC 2022 - Cancun, Mexico
Duration: Dec 6 2022Dec 9 2022

Publication series

NameProceedings of the IEEE Conference on Decision and Control
Volume2022-December
ISSN (Print)0743-1546
ISSN (Electronic)2576-2370

Conference

Conference61st IEEE Conference on Decision and Control, CDC 2022
Country/TerritoryMexico
CityCancun
Period12/6/2212/9/22

ASJC Scopus subject areas

  • Control and Systems Engineering
  • Modeling and Simulation
  • Control and Optimization

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