Decision and forecast horizons, agreeable plans, and the maximum principle for infinite horizon control problems
type: Item
instance of: scholarly article
title: Decision and forecast horizons, agreeable plans, and the maximum principle for infinite horizon control problems
zbMATH Open document ID: 0555.90061
DOI: 10.1016/0167-6377(84)90058-0
published in: Operations Research Letters
publication date: 1984-01-01T00:00:00Z
review text: This paper establishes a link between the concepts of optimality used in economic theory for infinite horizon planning models, and the concepts of decision and forecast horizons used in several areas of Management Science. It is shown that decision and forecast horizons induce an alternate definition of optimality which is stronger than the concept of 'agreeable plan' proposed by \textit{P. Hammond} [Rev. Econ. Stud. 42, 1-14 (1975; Zbl 0297.90005)]. All concepts of optimality share a common property, namely a Principle of Optimality. In an optimal control framework this implies that the maximum principle will be a necessary condition for optimality according to any of these definitions.
Mathematics Subject Classification ID: 90B50
Mathematics Subject Classification ID: 91B06
zbMATH DE Number: 3885640
zbMATH Keywords: optimality principle
zbMATH Keywords: infinite horizon planning models
zbMATH Keywords: decision and forecast horizons
zbMATH Keywords: agreeable plan
zbMATH Keywords: optimal control framework
zbMATH Keywords: maximum principle
author: Alain Haurie
author: Suresh P. Sethi
MaRDI profile type: Publication
full work available at URL: 0167-6377(84)90058-0
OpenAlex ID: W2030720281
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description: scientific article; zbMATH DE number 3885640