A Time-Inconsistent Stochastic Optimal Control Problem in an Infinite Time Horizon

Fuente: arXiv
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Autores principales: Wei, Qingmeng, Yong, Jiongmin
Formato: Preprint
Publicado: 2025
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author Wei, Qingmeng
Yong, Jiongmin
author_facet Wei, Qingmeng
Yong, Jiongmin
contents This paper is concerned with a time-inconsistent stochastic optimal control problem in an infinite time horizon with a non-degenerate diffusion in the state equation. A major assumption is that people become rational after a large time. Under such a condition, the problem in an infinite time horizon can be decomposed into two parts: a non-autonomous time-consistent problem in an infinite time horizon and a time-inconsistent problem in a finite time horizon. Then an equilibrium strategy will be constructed. Both Bolza type problem and recursive cost problem are considered.
format Preprint
id arxiv_https___arxiv_org_abs_2509_14495
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle A Time-Inconsistent Stochastic Optimal Control Problem in an Infinite Time Horizon
Wei, Qingmeng
Yong, Jiongmin
Optimization and Control
This paper is concerned with a time-inconsistent stochastic optimal control problem in an infinite time horizon with a non-degenerate diffusion in the state equation. A major assumption is that people become rational after a large time. Under such a condition, the problem in an infinite time horizon can be decomposed into two parts: a non-autonomous time-consistent problem in an infinite time horizon and a time-inconsistent problem in a finite time horizon. Then an equilibrium strategy will be constructed. Both Bolza type problem and recursive cost problem are considered.
title A Time-Inconsistent Stochastic Optimal Control Problem in an Infinite Time Horizon
topic Optimization and Control
url https://arxiv.org/abs/2509.14495