Conditions for Characterizing the Structure of Optimal Strategies in Infinite Horizon Dynamic Programs

The study of infinite horizon nonstationary dynamic programs using the operator approach is continued. The point of view here differs slightly from that taken by others in that Denardo’s local income function is not used as a starting point. Infinite horizon values, are defined as limits of finite horizon values, as the horizons get long. Two important conditions of an earlier paper are weakened yet the optimality equations, the optimality criterion, and the existence of optimal “structured” strategies are still obtained.