On a price formation free boundary model by Lasry and Lions

Luis A. Caffarelli, Peter A. Markowich, Jan-F. Pietschmann

Research output: Contribution to journalArticlepeer-review

18 Scopus citations

Abstract

We discuss global existence and asymptotic behaviour of a price formation free boundary model introduced by Lasry and Lions in 2007. Our results are based on a construction which transforms the problem into the heat equation with specially prepared initial datum. The key point is that the free boundary present in the original problem becomes the zero level set of this solution. Using the properties of the heat operator we can show global existence, regularity and asymptotic results of the free boundary. 2011 Académie des sciences.
Original languageEnglish (US)
Pages (from-to)621-624
Number of pages4
JournalComptes Rendus Mathematique
Volume349
Issue number11-12
DOIs
StatePublished - Jun 2011
Externally publishedYes

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