The Behavioral and Experimental Economics group has an influential position in this field in the Netherlands and Europe. CREED, the Amsterdam-based group, focuses particularly on three main projects: economics of political decision making; bounded rationality and institutions and experimental economics. The research of the Rotterdam-based group focuses on two broad themes: decision under risk and uncertainty and intertemporal choice.
- T. Kiseleva, F.O.O. Wagener
- Mathematics of Operations Research, 2015, 40(1), 24-55
We study the structure of the solution set of a class of infinite-horizon dynamic programming problems with one-dimensional state spaces, as well as their bifurcations, as problem parameters are varied. The solutions are represented as the integral curves of a multivalued optimal vector field on state space. Generically, there are three types of integral curves: stable points, open intervals that are forward asymptotic to a stable point and backward asymptotic to an unstable point, and half-open intervals that are forward asymptotic to a stable point and backward asymptotic to an indifference point; the latter are initial states to multiple optimal trajectories. We characterize all bifurcations that occur generically in one- and two-parameter families. Most of these are related to global dynamical bifurcations of the state-costate system of the problem.
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