Maximum Principle for Stochastic Recursive Optimal Control Problems Involving Impulse Controls

We consider a stochastic recursive optimal control problem in which the control variable has two components: the regular control and the impulse control. The control variable does not enter the diffusion coefficient, and the domain of the regular controls is not necessarily convex. We establish nece...

Full description

Saved in:
Bibliographic Details
Main Authors: Zhen Wu, Feng Zhang
Format: Article
Language:English
Published: Wiley 2012-01-01
Series:Abstract and Applied Analysis
Online Access:http://dx.doi.org/10.1155/2012/709682
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:We consider a stochastic recursive optimal control problem in which the control variable has two components: the regular control and the impulse control. The control variable does not enter the diffusion coefficient, and the domain of the regular controls is not necessarily convex. We establish necessary optimality conditions, of the Pontryagin maximum principle type, for this stochastic optimal control problem. Sufficient optimality conditions are also given. The optimal control is obtained for an example of linear quadratic optimization problem to illustrate the applications of the theoretical results.
ISSN:1085-3375
1687-0409