Template-type: ReDif-Paper 1.0 Author-Name: Méder Zsombor Author-Name: Flesch János Author-Name: Peeters Ronald Author-workplace-name: METEOR Title: Optimal choice for finite and infinite horizons Abstract: This paper lays down conceptual groundwork for optimal choice of a decision maker facing afinite-state Markov decision problem on an infinite horizon. We distinguish two notions of astrategy being favored on the limit of horizons, and examine the properties of the emerging binaryrelations. After delimiting two senses of optimality, we define a battery of optimal strategy sets– including the Ramsey-Weizäcker overtaking criterion – and analyze their relationships andexistence properties. We also relate to the work on pointwise limits of strategies by Fudenbergand Levine (1983). Keywords: mathematical economics; Series: Research Memoranda Creation-Date: 2012 Number: 024 File-URL: http://digitalarchive.maastrichtuniversity.nl/fedora/objects/guid:eab3db68-bd32-4dac-b208-ce019cf31593/datastreams/ASSET1/content File-Format: application/pdf File-Size: 358466 Handle: RePEc:unm:umamet:2012024