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@ -9,8 +9,7 @@ neural network.
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The approach uses the fact that the euler equation implicitly defines the
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optimal policy function, for example:
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$[0] = f(x(\theta),\theta)$.
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This can easily be turned into a mean square loss function by squaring both
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sides,
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This can easily be turned into a mean square objective function,
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$0 = f^2(x(\theta),\theta)$,
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allowing one to find $x(\dot)$ as the solution to a minimization problem.
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@ -57,7 +56,7 @@ three general computational approaches exist:
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\end{itemize}
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\end{itemize}
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I have chosen to use the AD to generate a euler equation function, which will
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then be the basis of our loss function.
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then be the basis of our objective function.
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The first step is to construct the intertemporal transition functions
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@ -73,7 +72,7 @@ and laws of motion functions, retuning a $k$-period transition function.
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The second step is to generate functions that represent the optimality conditions.
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By taking the appropriate derivatives with respect to the laws of motion and
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utility functions, this can be constructed explicitly.
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benefit functions, this can be constructed explicitly.
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Once these two functions are completed, they can be combined to create
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the euler equations, as described in appendix \ref{APX:Derivations:EulerEquations}.
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@ -92,7 +91,7 @@ the euler equations, as described in appendix \ref{APX:Derivations:EulerEquation
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\paragraph{Training}
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With the euler equation and resulting loss function in place,
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With the euler equation and resulting objective function in place,
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standard training approachs can be used to fit the function.
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I plan on using some variation on stochastic gradient descent.
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@ -114,28 +113,36 @@ simultaneously.
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I would like to verify this approach as I have not dived into
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some of the mathemeatics that deeply.
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\subsection{Functional Forms}
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The simpleset functional forms for the model are similar to those in
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\autocite{RaoRondina2020}, giving:
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\begin{itemize}
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\item The per-period benefit function:
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\begin{align}
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u^i(\{s^j_t\}, D_t) = \pi s^i_t
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\end{align}
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\item The launch cost function:
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\begin{align}
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F(x^i_t) = f \cdot x^i_t
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\end{align}
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\item The satellite destruction rate function:
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\begin{align}
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l^i(\{s^j_t\}, D_t) = 1 - e^{- d\cdot D_t - \sum^N_{j=1} h^j s^j_t}
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\end{align}
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\item The debris autocatalysis function:
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\begin{align}
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g(D_t) = g\cdot D_t
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\\
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g > 1
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\end{align}
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\end{itemize}
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\subsubsection{Existence concerns}
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\subsection{Existence concerns}
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%check matrix inverses etc.
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%
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I am currently working on a plan to guarantee existence of solutions.
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Some of what I want to do is check numerically crucial values as well as
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examine the necessary Inada conditions.
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\subsection{Computational Results}
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Cases to consider
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\begin{itemize}
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\item Reproduce Rao-Rondina single satellite model.
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\item Reproduce Adilov, perfect competition, cornot-like market.
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\item Add military operators to Adilov's model.
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This will involve some sort of competitive complementarity
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with diminishing marginal returns.
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\item Competitive market where the number of satellites improves quality, i.e. allows
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for pricing differences (Orbital Internet, e.g. Starlink).
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\item Interacting orbital shells, using a vector representation of heterogeneous risk
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imposed by constellations and debris.
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\end{itemize}
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Some of what I want to do is check numerically crucial values and
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mathematically necessary conditions for existence and uniqueness.
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Unfortunately this is little more than just a plan right now.
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\end{document}
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