The Hierarchical Optimization of the Nonlinear Dynamical Input-Output Model

In this paper the hierarchical optimization of a nonlinear dynamical input-output model with time delays is studied. By combining the strategies of the costate prediction approach due to Hassan and Singh and the time delay algorithm by Tamura, the variable prediction-time decomposition technique is put forward. Based on the technique, the investment decision prediction method with three-level hierarchical optimization structure is proposed. An applied example and the conclusions obtained demonstrate that the method proposed by the paper is rather simple and effective when compared with those for linear model.