Equilibrium Control in Uncertain Linear Quadratic Differential Games with V-Jumps and State Delays: A Case Study on Carbon Emission Reduction

Abstract

'Átila Madureira Bueno' 'Diego Colón' 'Marcus Varanis'] Uncertainty, time delays, and jumps often coexist in dynamic game problems due to the complexity of the environment. To address such issues, we can utilize uncertain delay differential equations with jumps to depict the dynamic changes in differential game problems that involve uncertain noise, delays, and jumps. In this paper, we first examine a linear quadratic differential game optimistic value problem within an uncertain environment characterized by jumps and delays. By applying the $Z(x,y)$ transform, we convert the infinite-dimensional problem into a finite-dimensional one. We then demonstrate that the condition for the existence of a Nash equilibrium strategy is equivalent to the existence of solutions to two cross-coupled matrix Riccati equations. Furthermore, we explore the saddle point equilibrium strategy of the linear quadratic differential game optimistic value model and derive the corresponding saddle point equilibrium solution. Finally, we apply our results to solve a carbon emission reduction game problem.