Transversality condition

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

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