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A stochastic control problem with regime switching
Journal article

A stochastic control problem with regime switching

Abstract

This paper studies a stochastic control problem with regime switching in a fairly general abstract setting. Such problems may arise from production planning management. We perform a full mathematical analysis of this stochastic control problem via the HJB equation and verification. The connection of the optimal controls and subgame perfect controls is discussed, and it is shown that the optimal controls solve the generalized HJB equation as …

Authors

COVEI D; PIRVU TA

Journal

Carpathian Journal of Mathematics, Vol. 37, No. 3, pp. 427–440

Publisher

Technical University of Cluj Napoca, North University Center of Baia Mare

DOI

10.37193/cjm.2021.03.06

ISSN

1584-2851