Vol. 57, Issue 4 (2026)
Non-Classical Optimal Control with Piecewise Royalty Functions
This paper presents a hybrid Newton-Brent shooting method for non-classical optimal control problems with unknown final state and non-differentiable piecewise royalty structures. We introduce hyperbolic tangent approximations to replace discontinuous functions, derive natural boundary conditions from Malinowska & Torres (2010), and validate against four discretization schemes. The C++ implementation with AMPL/MINOS cross-verification demonstrates superior accuracy for three-stage royalty structures.
Key Technical Contributions
- Tanh smoothing for piecewise discontinuities with controllable approximation parameter
- Novel shooting method combining Newton iteration with Brent's method for boundary conditions
- Four-scheme validation: Euler, Runge-Kutta, Trapezoidal, Hermite-Simpson
Real-World Applications
Licensing agreements, resource extraction royalties, technology monetization with threshold-based payment structures.