State evolution: \(\mathbf{x}_{t+1} = f_t(\mathbf{x}_t, a_t, e_{t+1})\)
Reward and value functions
Solution methods: open loop, dynamic programming, policy search
Real options and the value of flexibility
Preparation
Read Herman et al. (2020), in particular focusing on …
References
Herman, J. D., Quinn, J. D., Steinschneider, S., Giuliani, M., & Fletcher, S. (2020). Climate adaptation as a control problem: Review and perspectives on dynamic water resources planning under uncertainty. Water Resources Research, e24389. https://doi.org/10.1029/2019wr025502