Mathematics for Economists

(Greg DeLong) #1

Dynamic programming


DeÖnition


(^1) Sis called the state space.
(^2) Ais called the action space.
(^3) rt(s,a)is the reward function at time periodt.
(^4) ft(s,a)is the transition function at time periodt.
(^5) Φt(s)! 2 Ais the correspondence of feasible actions at time period
t.

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