SIAM Journal on Control and Optimization, Vol.51, No.3, 2335-2355, 2013
OPTIMAL HARVESTING IN THE STOCHASTIC LOGISTIC GROWTH MODEL WITH FINITE HORIZON
We consider a singular control problem of optimal harvesting to maximize the expected total value of the harvested individuals in the logistic model with finite horizon. Using the viscosity solution technique, we develop the penalty method to solve the parabolic variational inequality associated with this problem and analyze the behaviors of the moving free boundary for the variational inequality. The optimal harvesting policy is shown to exist.
Keywords:optimal harvesting;singular control;parabolic variational inequality;moving free boundary;viscosity solution