Pontryagin's Maximum Principle for Infinite Horizon Optimal Control Problems with Bounded Processes and with State Constraints

Abstract: This paper concerns a class of infinite horizon optimal control problems with state constraints. By extending the needle variation method to the infinite horizon case we obtain a complete set of necessary optimality conditions for a strong local minimizer in form of the Pontryagin maximum principle and the validity of several transversality conditions at infinity. To this purpose, we develop an approach in the space of continuous functions converging at infinity. The considerations including new results on optimality and transversality conditions, on Banach spaces of continuous functions, on the needle variation method and on problems with state constraints on the unbounded time horizon.