264
The necessary conditions for (26) to be an extremum are
(2~~-1)
or (21')
(1~~) (22')
or (27)
These give the exact counterpart of the continuous Maximum Principle.
They contain 3N-3 conditions for the determination of the 3N-3 unknowns
x2,. •., XN-1, d ui, ••• ,uN an pl, •.• , Prv-1"
Example 9.2 Optimal Management of Renewable Resources
Consider a model of optimal harvesting of a renewable resource,
say fish (C. Clark 1976, Ch. 7). The fish population Pk at generation k
gives birth to Rk some of which may be harvested Hk. The "stock-recruitment"
relation is
The dynamics of the fish population are
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