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Team and Person-by-Person Optimality Conditions of Differential Decision Systems

In this paper, we derive team and person-by-person optimality conditions for distributed differential decision systems with different or decentralized information structures. The necessary conditions of optimality are given in terms of Hamiltonian system of equations consisting of a coupled backward and forward differential equations and a Hamiltonian projected onto the subspace generated by the decentralized information structures. Under certain global convexity conditions it is shown that the optimality conitions are also sufficient.

preprint2013arXivOpen access
Charalambos D. CharalambousThemistoklis CharalambousChristoforos N. Hadjicostis
math.OC
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Charalambos D. CharalambousThemistoklis CharalambousChristoforos N. Hadjicostis

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