Abstract
We introduce as a prototype of deterministic dynamic optimization problems a simple allocation problem, give firstly an intuitive and then a formal description of the general problem, and derive the basic solution technique: value iteration and optimality criterion. This allows us to derive structural properties of the solution of the allocation problem.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Dreyfus, S. E., & Law, A. M. (1977). The art and theory of dynamic programming. New York: Academic Press.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2016 Springer International Publishing AG
About this chapter
Cite this chapter
Hinderer, K., Rieder, U., Stieglitz, M. (2016). The Stationary Deterministic Model and the Basic Solution Procedure. In: Dynamic Optimization. Universitext. Springer, Cham. https://doi.org/10.1007/978-3-319-48814-1_2
Download citation
DOI: https://doi.org/10.1007/978-3-319-48814-1_2
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-48813-4
Online ISBN: 978-3-319-48814-1
eBook Packages: Mathematics and StatisticsMathematics and Statistics (R0)