Bifurcations of optimal vector fields

We study the structure of the solution set of a class of infinite-horizon dynamic programming problems with one-dimensional state spaces, as well as their bifurcations as problem parameters are varied. The solutions are represented as the integral curves of a multi-valued `optimal' vector field on state space. Generically, there are three types of integral curves: stable points, open intervals that are forward asymptotic to a stable point and backward asymptotic to an unstable point, and half-open intervals that are forward asymptotic to a stable point and backward asymptotic to an indifference point; the latter are initial states to multiple optimal trajectories. We characterize all bifurcations that occur generically in one- and two-parameter families. Most of these are related to global dynamical bifurcations of the state-costate system of the problem.