Deterministic approximation for stochastic control problems

R. Sh Liptser*, W. J. Runggaldier, M. Taksar

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

9 Scopus citations

Abstract

We consider a class of stochastic control problems where uncertainty is due to driving noises of general nature as well as to rapidly fluctuating processes affecting the drift. We show that, when the noise "intensity" is small and the fluctuations become fast, the stochastic problems can be approximated by a deterministic one. We also show that the optimal control of the deterministic problem is asymptotically optimal for the stochastic problems.

Original languageEnglish
Pages (from-to)161-178
Number of pages18
JournalSIAM Journal on Control and Optimization
Volume34
Issue number1
DOIs
StatePublished - Jan 1996

Keywords

  • Asymptotic optimality
  • Stochastic and deterministic control
  • Stochastic differential equations
  • Weak convergence

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