Robust Control: A Note on the Response of the Control to Changes in the
In this paper an analytical framework using robust control was developed for the one-state and one-control variable model to examine the response of the control to changes in the "free" parameter. However, in contrast to Gonzalez and Rodriguez (2003), the sign of the ``free" parameter in the criterion function of the min-max problem is negative. We find that this set up corresponds to the case where nature is benevolent while the problem posed by Gonzalez and Rodriguez (2003) corresponds to one of a malevolent nature. For the benevolent case, we show that: (i) more uncertainty produces a more cautious response of the control variable, and(ii) the control variable response is concave down for an increasing shape and concave up for a decreasing shape.