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On the informational structure in optimal dynamic stochastic control

arXiv:1503.02375

Abstract

We formulate a very general framework for optimal dynamic stochastic control problems which allows for a control-dependent informational structure. The issue of informational consistency is investigated. Bellman's principle is formulated and proved. In a series of related results, we expound on the informational structure in the context of (completed) natural filtrations of stochastic processes.

43 pages