Optimality Conditions for Long-Run Average Rewards With Underselectivity and Nonsmooth Features

2017 ◽  
Vol 62 (9) ◽  
pp. 4318-4332 ◽  
Author(s):  
Xi-Ren Cao
1989 ◽  
Vol 22 (2) ◽  
pp. 223-242 ◽  
Author(s):  
Rabi N. Bhattacharya ◽  
Mukul Majumdar

2005 ◽  
Vol 07 (01) ◽  
pp. 107-115 ◽  
Author(s):  
REINOUD JOOSTEN

A two-person general-sum repeated game with vanishing actions is an infinitely repeated game where the players face the following restrictions. Each action must be used by player k ∈ {1,2} at least once in every rk ∈ ℕ consecutive stages, otherwise the action vanishes for the remaining play. We assume that the players wish to maximize their limiting average rewards over the entire time-horizon. A strategy-pair is jointly convergent if for each action pair a number exists to which the relative frequency with which this action pair is chosen, converges with probability one. A pair of feasible rewards is called individually rational if each player receives at least the threat-point reward, i.e., the amount which he can guarantee himself regardless of what the opponent does given r1, r2 and the actions available in the long run. In a repeated game with vanishing actions, there may exist multiple threat points which are endogenous to the play. We prove that all individually-rational jointly-convergent pure-strategy rewards can be supported by an equilibrium. Furthermore, each convex combination of individually-rational jointly-convergent pure-strategy rewards, can be supported by an equilibrium for m × n-games provided r1 > m ≥ 2, r2 > n ≥ 2.


2008 ◽  
Vol 9 (2) ◽  
pp. 45-61
Author(s):  
Myoung Shik Choi

In foreign exchange transaction, arbitrage mechanism is the means by which a market functions with the global market order. An arbitrage confirms chat bilateral exchange rate is the same as trilateral races. However, the long-run behavior of the exchange rate could be diverged from the short-run movement. This study, in this sense, reviews the advances of exchange rates in the long-run and the shore-run respectively in order to develop desirable attainments on their optimality conditions. These effects on the economy will be discussed. In concluding words, it is revealed that the short-run and the long-run exchange rates exhibit a significant discrepancy and have different behaviors. This implies chat any spread between the shore-run and the long-run exchange rates might happen due to partially different adjustment of the arbitrage rule.


2020 ◽  
Vol 26 ◽  
pp. 37 ◽  
Author(s):  
Elimhan N. Mahmudov

The present paper studies the Mayer problem with higher order evolution differential inclusions and functional constraints of optimal control theory (PFC); to this end first we use an interesting auxiliary problem with second order discrete-time and discrete approximate inclusions (PFD). Are proved necessary and sufficient conditions incorporating the Euler–Lagrange inclusion, the Hamiltonian inclusion, the transversality and complementary slackness conditions. The basic concept of obtaining optimal conditions is locally adjoint mappings and equivalence results. Then combining these results and passing to the limit in the discrete approximations we establish new sufficient optimality conditions for second order continuous-time evolution inclusions. This approach and results make a bridge between optimal control problem with higher order differential inclusion (PFC) and constrained mathematical programming problems in finite-dimensional spaces. Formulation of the transversality and complementary slackness conditions for second order differential inclusions play a substantial role in the next investigations without which it is hardly ever possible to get any optimality conditions; consequently, these results are generalized to the problem with an arbitrary higher order differential inclusion. Furthermore, application of these results is demonstrated by solving some semilinear problem with second and third order differential inclusions.


2005 ◽  
pp. 133-143 ◽  
Author(s):  
E. Balashova

The method of analyzing and modeling cyclical fluctuations of economy initiated by F. Kydland and E. Prescott - the 2004 Nobel Prize winners in Economics - is considered in the article. They proposed a new business cycle theory integrating the theory of long-run economic growth as well as the microeconomic theory of consumers and firms behavior. Simple version of general dynamic and stochastic macroeconomic model is described. The given approach which was formulated in their fundamental work "Time to Build and Aggregate Fluctuations" (1982) gave rise to an extensive research program and is still used as a basic instrument for investigating cyclical processes in economy nowadays.


2014 ◽  
pp. 4-20 ◽  
Author(s):  
G. Idrisov ◽  
S. Sinelnikov-Murylev

The paper analyzes the inconsequence and problems of Russian economic policy to accelerate economic growth. The authors consider three components of growth rate (potential, Russian business cycle and world business cycle components) and conclude that in order to pursue an effective economic policy to accelerate growth, it has to be addressed to the potential (long-run) growth component. The main ingredients of this policy are government spending restructuring and budget institutions reform, labor and capital markets reforms, productivity growth.


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