A Potential Approach for One-Dimensional Price Formation Models
Explore a seminar on one-dimensional price formation models using a potential approach in mean-field games. Delve into the application of Poincaré's Lemma to simplify first-order mean-field games related to price formation, reducing the system to a single potential function. Learn how solving a convex variational problem determines the potential and understand the relationship between solutions of the mean-field games system and the variational problem. Examine the application of these findings to the linear-quadratic model, gaining insights into innovative approaches for solving complex economic systems. Discover the latest research in this field, including references to recent works by Ashrafyan, Bakaryan, Gomes, Gutierrez, and Ferreira on variational and potential approaches to price formation and planning mean-field games in one dimension.