Econometrica: Sep, 1970, Volume 38, Issue 5

Recursive Decision Systems: An Existence Analysis

https://doi.org/0012-9682(197009)38:5<666:RDSAEA>2.0.CO;2-E
p. 666-681

Peter E. Kennedy, Richard H. Day

In this paper recursive decision systems are structured so that topological concepts can be applied to formulate and help solve existence problems. Existence of stationary states and compact orbits is established. The analysis is then applied to recursive programs, a special class of recursive decision systems in which the decision operator is a mathematical program. The theory is extended to models of many decision makers with rolling schedules of future actions.