this fixed point is the value function, and that the value function can be computed by value iteration. …

In dynamic models driven by diffusion processes, the smoothness of the value function plays a crucial role for … that the value function for the optimal control of any time-homogeneous, one-dimensional diffusion is twice continuously … differentiable, under Lipschitz, growth, and non-vanishing volatility conditions. Under similar conditions, the value function of any …

S-shaped value function, the loss aversion, and the distortion of probability, in decision making. In order to do this …