Abstract
In this paper, a class of resource extraction problems involving stochastic dynamics and randomly fluctuating non-autonomous payoffs are developed. An empirically meaningful theory of optimization must therefore incorporate uncertainty in an appropriate manner. The introduction of this stochastic specification lead to a novel approach to solve dynamic problems in terms of properties and solution concepts not explored in the literature before. Exact solution to this stochastically complicated problem is presented. Computer simulations are provided. The analysis could be applied to various practical problems involving complex uncertainties.
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© 2006 Springer-Verlag Berlin Heidelberg
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Cheng, S.T.S., Yeung, D.W.K. (2006). Exact Solution to a Class of Stochastic Resource Extraction Problems. In: Haasis, HD., Kopfer, H., Schönberger, J. (eds) Operations Research Proceedings 2005. Operations Research Proceedings, vol 2005. Springer, Berlin, Heidelberg . https://doi.org/10.1007/3-540-32539-5_78
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DOI: https://doi.org/10.1007/3-540-32539-5_78
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-32537-6
Online ISBN: 978-3-540-32539-0
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