We show how state-dependent behavioral theory, as implemented by stochastic dynamic programming can enhance our understanding of play, assuming that play is an evolutionary adaptation rather than a non-functional cons...
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We show how state-dependent behavioral theory, as implemented by stochastic dynamic programming can enhance our understanding of play, assuming that play is an evolutionary adaptation rather than a non-functional consequence of other processes. We first explain in generic terms the components of a state-dependent behavioral model. We then develop a state-dependent life history model on the assumption that social play is adaptive and thus focus on play's contribution toward the development of skill and how such development affects an individual's future lifetime expected reproductive success (i.e. fitness that accounts for both survival and reproduction). Although our model is not intended to capture a specific situation, a number of commonly observed phenomena emerge from the model, including that most social play is dyadic and that animals select partners that are of similar age or skill. We discuss ways of increasing the fidelity of the model by allowing injury due to play, the role of energetic reserves, handicapping, and polyadic play.
1. Many studies of adaptive harvest management already exist in the literature, but most (if not all) use long, sometimes infinite, time horizons. Such long-term objectives provide an opportunity to manage experimenta...
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1. Many studies of adaptive harvest management already exist in the literature, but most (if not all) use long, sometimes infinite, time horizons. Such long-term objectives provide an opportunity to manage experimentally, so that poorly understood dynamics are learned and any returns sacrificed for experimentation are repaid by improved management over the remaining time horizon. 2. However, a manager is unlikely to weight outcomes in the distant future equally against outcomes in the present. Furthermore, the most appropriate model of system dynamics may not remain constant over the time-frame required to experiment, learn and improve management. In these cases the use of discounting and/or a finite time horizon fit the manager's assumptions and goals more effectively, and the value of experimentation is likely to be diminished. 3. In this paper we construct a simple model of a hypothetical population and compare optimal passive and active adaptive harvest strategies over a range of time horizons. This allows us to determine the optimal level of experimentation for short-, medium- and long-term goals. 4. We discover that the optimal active adaptive harvest strategy may be precautionary over short to medium time horizons, rather than experimental. That is, an action with known moderate benefits is preferred over an action with uncertain but marginally larger expected benefits. This runs counter to the widespread assumption in the adaptive management literature that incorporating learning into an optimization of management will encourage experimentation. 5. Synthesis and applications. The general results of this paper have potential application to any environmental management problem where adaptive management might be applied;for example, conservation, pest control, harvesting and management of water flows. We examine adaptive management over a range of finite time horizons to reflect a variety of possible management goals and assumptions. Our simple example demonstr
A Markovian decision model with general state space, compact action space, and the average cost as criterion is considered. The existence of an optimal policy is shown via an optimality inequality in terms of the mini...
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A Markovian decision model with general state space, compact action space, and the average cost as criterion is considered. The existence of an optimal policy is shown via an optimality inequality in terms of the minimal average cost g and a relative value function w. The existence of some w is usually shown via relative compactness in a space of real-valued functions on the state space. Here it shall be shown that one can instead do with pointwise relative compactness in the set of real numbers if one makes use of a (generalized) lower limit of functions. An application to an inventory model is given.
This paper presents an asymptotic analysis of stochastic manufacturing systems consisting of machines in tandem subject to breakdown and repair and facing a constant demand, as the sates of change of the machine state...
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This paper presents an asymptotic analysis of stochastic manufacturing systems consisting of machines in tandem subject to breakdown and repair and facing a constant demand, as the sates of change of the machine states approach infinity. This situation gives rise to a limiting problem in which the stochastic machine availability is replaced by its equilibrium mean availability. The long-run average cost for the original problem converges to the long-run average cost of the limiting problem. A method of "shrinking" and "entire lifting" is introduced in order to construct the near optimal controls for the original problem by using near optimal controls of the limiting problem. The convergence rate of the long-run average cost for the original problem to that of the limiting problem is established. This helps in providing an error estimate for the constructed open-loop asymptotic optimal control. (C) 2000 Academic Press.
We consider the problem of determining (for a short lifecycle) retail product initial and replenishment order quantities that minimize the cost of lost sales, back orders, and obsolete inventory. We model this problem...
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We consider the problem of determining (for a short lifecycle) retail product initial and replenishment order quantities that minimize the cost of lost sales, back orders, and obsolete inventory. We model this problem as a two-stage stochasticdynamic program, propose a heuristic, establish conditions under which the heuristic finds an optimal solution, and report results of the application of our procedure at a catalog retailer. Our procedure improves on the existing method by enough to double profits. In addition, our method can be used to choose the optimal reorder time, to quantify the benefit of leadtime reduction, and to choose the best replenishment contract.
The existing literature (i) examines bycatch and discard behavior in a static framework and (ii) treats bycatch as a deterministic process uniform across vessels. Using a dynamic representative agent model in a two-st...
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The existing literature (i) examines bycatch and discard behavior in a static framework and (ii) treats bycatch as a deterministic process uniform across vessels. Using a dynamic representative agent model in a two-stock resource, this paper explores strategic interactions between a social planner and two groups of harvesters, one of which imposes a stochastic '' technological externality '' (bycatch) on the other. In addition to limitations on entry and the number of trips taken in each industry, three bycatch control instruments are compared to the unconstrained case: taxes, trip limits, and value-based quotas. Implementation and enforcement costs aside, taxes dominate both types of quota, and value limits outperform trip limits by eliminating one type of discarding. In simulations, relative performance depends upon variance in the bycatch process, differences in the ex vessel prices of stocks, relative efficiency of the harvester types, and fixed costs on the trip and industry margins. (c) 2004 Elsevier Inc. All rights reserved.
The notion of being sure that you have completely eradicated an invasive species is fanciful because of imperfect detection and persistent seed banks. Eradication is commonly declared either on an ad hoc basis, on not...
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The notion of being sure that you have completely eradicated an invasive species is fanciful because of imperfect detection and persistent seed banks. Eradication is commonly declared either on an ad hoc basis, on notions of seed bank longevity, or on setting arbitrary thresholds of 1% or 5% confidence that the species is not present. Rather than declaring eradication at some arbitrary level of confidence, we take an economic approach in which we stop looking when the expected costs outweigh the expected benefits. We develop theory that determines the number of years of absent surveys required to minimize the net expected cost. Given detection of a species is imperfect, the optimal stopping time is a trade-off between the cost of continued surveying and the cost of escape and damage if eradication is declared too soon. A simple rule of thumb compares well to the exact optimal solution using stochastic dynamic programming. Application of the approach to the eradication programme of Helenium amarum reveals that the actual stopping time was a precautionary one given the ranges for each parameter.
We consider an ecosystem with two distinct equations of motion that are separated by a threshold value of the state variable. We find that increasing uncertainty (both uncertainty embedded in the natural system and un...
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We consider an ecosystem with two distinct equations of motion that are separated by a threshold value of the state variable. We find that increasing uncertainty (both uncertainty embedded in the natural system and uncertainty of the decisionmaker about the location of the threshold) can lead to nonmonotonic changes in precaution: a reduction in uncertainty can first increase and then decrease optimal precautionary activity. This nonmonotonicity can help to explain why regulators often give conflicting arguments about optimal abatement policies in the face of uncertainty. For example, some regulators argue for an immediate reduction in pollutant loading until uncertainty about the underlying process is reduced while others call for no costly reductions in pollutant loading until the same uncertainty is reduced. These statements can be consistent even if both sides agree on both economic objectives and the system dynamics, but have different priors on the uncertainty involved. (C) 2010 Elsevier B.V. All rights reserved.
In this paper, we introduce nonlinear stochasticdynamic problems on discrete time domains where events may occur at unevenly spaced time points. We define Euler equation and transversality condition for the problem. ...
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In this paper, we introduce nonlinear stochasticdynamic problems on discrete time domains where events may occur at unevenly spaced time points. We define Euler equation and transversality condition for the problem. We prove that the Euler equation and the transversality condition are sufficient for the existence of the optimal solution. Next we generalize discrete time Cagan type rational expectation model to multivariate case. As an application of the main results, we obtain an explicit solution to a log-linearized nonlinear stochastic growth model.
We use a stochasticdynamic framework to compare price collars (price ceilings and floors) in a cap-and-trade system with uncertainty in the level of baseline emissions and costs. We consider soft collars, which provi...
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We use a stochasticdynamic framework to compare price collars (price ceilings and floors) in a cap-and-trade system with uncertainty in the level of baseline emissions and costs. We consider soft collars, which provide limited volume of additional emission allowances (a reserve) at the price ceiling, and hard collars, which provide an unlimited supply of additional allowances, thereby preventing allowance prices from exceeding the price ceiling. Conversely, allowances are removed from the market if prices fall to the floor. We find that increasing the size of the reserve strictly lowers expected net present values of compliance costs;however, there is a diminishing effect as the allowance reserve is expanded. Most of the expected cost savings are achieved with a modest reserve. Consequently, a rather limited soft price collar could provide considerable assurance about cost while preventing the possibility that emissions could spiral out of control. (C) 2011 Elsevier Inc. All rights reserved.
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