Bellman Equation

This article talks about Bellman Equation, which programming breaks a multi-period planning problem into simpler steps at different points in time. It requires keeping track of how the decision situation is evolving over time. Bellman Equation was first applied to engineering control theory and to other topics in applied mathematics, and subsequently became an important tool in economic theory. It is a necessary condition for optimality associated with the mathematical optimization method known as dynamic programming.