Transversality condition explained

In optimal control theory, a transversality condition is a boundary condition for the terminal values of the costate variables. They are one of the necessary conditions for optimality infinite-horizon optimal control problems without an endpoint constraint on the state variables.

See also

• Pontryagin's maximum principle

Further reading

• Book: Brian . Beavis . Ian . Dobbs . Optimisation and Stability Theory for Economic Analysis . New York . Cambridge University Press . 1990 . 0-521-33605-8 . 252–259 . Variable Endpoints and Transversality Conditions . https://books.google.com/books?id=L7HMACFgnXMC&pg=PA252 .
• Book: Daniel . Léonard . Ngo Van . Long . Optimal Control Theory : Static Optimization in Economics . New York . Cambridge University Press . 1992 . 0-521-33746-1 . Endpoint Constraints and Transversality Conditions . 221–262 . https://books.google.com/books?id=gSHxK5Cq4BgC&pg=PA221 .