| Article ID: | iaor2009487 |
| Country: | Germany |
| Volume: | 13 |
| Issue: | 1 |
| Start Page Number: | 45 |
| End Page Number: | 64 |
| Publication Date: | Feb 2005 |
| Journal: | Central European Journal of Operations Research |
| Authors: | Feichtinger Gustav, Caulkins Jonathan P., Tragler Gernot, Grass Dieter |
| Keywords: | control processes |
A simple model is considered that rewards ‘moderation’ – finding the right balance between sliding down either of two ‘slippery slopes’. Optimal solutions are computed as a function of two key parameters: (1) the cost of resisting the underlying uncontrolled dynamics and (2) the discount rate. Analytical expressions are derived for bifurcation lines separating regions where it is optimal to fight to stay balanced, to give in to the attraction of the ‘left’ or the ‘right’, or to decide based on one's initial state.