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Optimal exploration and consumption of a natural resource—deterministic case
Author(s) -
Derzko N. A.,
Sethi S. P.
Publication year - 1981
Publication title -
optimal control applications and methods
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.458
H-Index - 44
eISSN - 1099-1514
pISSN - 0143-2087
DOI - 10.1002/oca.4660020102
Subject(s) - consumption (sociology) , mathematical optimization , resource (disambiguation) , time horizon , natural resource , optimal control , computer science , horizon , natural (archaeology) , dynamic programming , partial differential equation , differential (mechanical device) , resource consumption , mathematical economics , mathematics , engineering , ecology , geology , computer network , social science , paleontology , geometry , mathematical analysis , aerospace engineering , sociology , biology
An exploration and consumption model for exhaustible natural resources is used to formulate a deterministic optimal control problem over an infinite time horizon. A dynamic programming approach is employed throughout. The non‐linear partial differential equation which results from an application of the necessary conditions is solved analytically by the method of characteristics. Several properties of the solution are discussed.