The Maximum Principle: Continuous Time

Suresh Sethi

Chapter 2 in Optimal Control Theory, 2021, pp 25-63 from Springer

Abstract: Abstract This chapter introduces the maximum principle as a necessary condition that must be satisfied by any optimal control for a basic problem with constraints on the control variables. The method of dynamic programming is used to derive the maximum principle and it yields significant economic interpretations of the adjoint variables and the transversality conditions introduced during the derivation. The maximum principle is then applied to solve some simple, but illustrative examples. Importantly, the maximum principle is also shown to be sufficient for optimal control under an appropriate concavity condition, which holds in many management science applications. The chapter concludes by illustrating the use of Excel spreadsheet software to solve an optimal control problem. There are many exercises at the end of the chapter.

Date: 2021
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sptchp:978-3-030-91745-6_2

Ordering information: This item can be ordered from
http://www.springer.com/9783030917456

DOI: 10.1007/978-3-030-91745-6_2

Access Statistics for this chapter

More chapters in Springer Texts in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().