Competitive Prices, Dynamic Programming under Uncertainty, a Nonstationary Case.
Abstract
A one-good economy is considered. The good can be used either for consumption or for production. If c units of the good are consumed and x units of the product are put into production, then the society gets u(t) (c) + p(t) (x) units of satisfaction, or utility, and the quantity of the good available in the next period is f(t) (x;w(t)) where w(t) are independent random variables. Using the concept of competitive prices and policies qualitative properties of optimal policies for finite and infinite time horizon problem are obtained. These results have applications to problem of nonrenewable resources, storage problem and economic growth models under uncertainty. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 1976
- Accession Number
- ADA028243
Entities
People
- Jack Schechtman
Organizations
- University of California, Berkeley