Policy Iteration Algorithms for Zero-Sum Stochastic Differential Games with Long-Run Average Payoff Criteria

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Abstract

This paper studies the policy iteration algorithm (PIA) for zero-sum stochastic differential games with the basic long-run average criterion, as well as with its more selective version, the so-called bias criterion. The system is assumed to be a nondegenerate diffusion. We use Lyapunov-like stability conditions that ensure the existence and boundedness of the solution to certain Poisson equation. We also ensure the convergence of a sequence of such solutions, of the corresponding sequence of policies, and, ultimately, of the PIA.

Original languageEnglish
Pages (from-to)395-421
Number of pages27
JournalJournal of the Operations Research Society of China
Volume2
Issue number4
DOIs
StatePublished - 1 Dec 2014

Keywords

  • Bias game
  • Ergodic payoff criterion
  • Nondegenerate diffusions
  • Poisson equation
  • Policy iteration algorithm
  • Schäl convergence
  • Zero-sum stochastic differential games

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