Bellman Equation

The Bellman equation is a fundamental concept in decision-making and optimization, particularly in fields like economics and artificial intelligence. It helps determine the best strategy for achieving a goal over time by breaking down a complex problem into simpler, manageable parts. Essentially, it states that the best way to make a decision now depends on the outcomes of future decisions. By evaluating current choices and their potential consequences, the Bellman equation allows us to identify the most effective path to reach a desired outcome while considering both present and future impacts.