Skiba points in free end-time problems

B-Tier
Journal: Journal of Economic Dynamics and Control
Year: 2015
Volume: 51
Issue: C
Pages: 404-419

Authors (6)

Caulkins, Jonathan P. (not in RePEc) Feichtinger, Gustav (Technische Universität Wien) Grass, Dieter (not in RePEc) Hartl, Richard F. (not in RePEc) Kort, Peter M. (Universiteit van Tilburg) Seidl, Andrea (not in RePEc)

Score contribution per author:

0.335 = (α=2.01 / 6 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Since the end of the seventies Skiba points have been studied in infinite time optimal control problems with multiple steady states. At such a Skiba point the decision maker is indifferent between choosing trajectories that approach different steady states. This paper extends this theory towards free end-time optimal control problems, where the decision maker collects a salvage value at the endogenous horizon date. In particular, besides operating forever, the decision maker can choose to stop operations immediately, or to operate during a finite time interval after which the decision maker stops and collects a salvage value.

Technical Details

RePEc Handle
repec:eee:dyncon:v:51:y:2015:i:c:p:404-419
Journal Field
Macro
Author Count
6
Added to Database
2026-01-25