Free Boundary Control of Brownian Motion and a Related Optimal Stopping Problem.
Abstract
This problem is motivated by studying dissipative dynamic systems under uncertainty, which in the simplest case will be a model of the automatic cruise control of an aircraft under rain down wind conditions. Consider a new type of controlled diffusion models in which there are no restrictions on the drift (which is under our control), moreover the drift can take on infinite values. This results in the so called singular or free boundary control. The optimal policy in these models is different from the ones seen in the classical cases. It consists of keeping the process within certain boundaries with minimal efforts. It is shown that one can find optimal boundaries by considering a special stopping game of two players with opposite interests. Keywords: Control Theory.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1986
- Accession Number
- ADA176971
Entities
People
- Michael I. Taksar
Organizations
- Florida State University