# Tag Info

Accepted

### When Optimal Control fails (?)

I believe the problem is that the steady state may not exist, and the system instead exhibits steady growth (depending on parameters). The reason is because the model is equivalent to the standard ...
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### References to learn continuous-time dynamic programming

For continuous-time stochastic dynamic programming, the small, nontechnical Art of Smooth Pasting by Dixit is a wonderful option. It does a very effective job of conveying the basic intuition. Stokey'...
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### When Optimal Control fails (?)

I am posting this as an answer, because it continues on user @ivansml answer... which is the one that identified the catch here, a catch I naively have overlooked (although it is a narrow case, while ...
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### Time costs and the St. Petersburg paradox

Consider the version of the paradox from Wikipedia: A casino offers a game of chance for a single player in which a fair coin is tossed at each stage. The pot starts at 2 dollars and is doubled ...
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### In Blackwell's condition for T to be a contraction mapping, we require that satisfies discounting. What is the intuition of discounting?

Without discounting, you cannot show either $$T(g + || f - g||) \leq Tg + \beta || f - g||$$ or $$T(f + || g - f||) \leq Tf + \beta || g - f||$$ and thus you cannot demonstrate that $T$ is ...
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### A Cake Eating Problem in Continuous Time: Hamiltonian or HJB?

The comment by user @MaartenPunt is accurate. I don't think that in general one can identify situations where one should have a clear preference over one formulation over the other. It is more of a ...
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### References to learn continuous-time dynamic programming

Dynamic Programming & Optimal Control by Bertsekas Introduction to Modern Economic Growth by Acemoglu The Acemoglu book, even though it specializes in growth theory, does a very good job ...
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### Optimal stopping (reference request)

This is known as the McCall search model in economics. The original paper shows that the optimal stopping strategy rule is given by a "reservation wage", there is a threshold such that it is ...
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