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Discrete-Time Approximations of Controlled Diffusions with Infinite Horizon Discounted and Average Cost

Discrete-Time Approximations of Controlled Diffusions with Infinite Horizon Discounted and Average Cost

We present discrete-time approximation of optimal control policies for infinite horizon discounted/ergodic control problems for controlled diffusions in $\Rd$\,. In particular, our objective is to show near optimality of optimal policies designed from the approximating discrete-time controlled Markov chain model, for the discounted/ergodic optimal control problems, in the true controlled …