Behavioral models of stochastic control.

A manager in charge of several activities typically faces a problem of how to allocate his limited time and effort to their supervision and control. Given sufficient effort, a supervised activity tends to improve, whereas a neglected activity tends to deteriorate. Both of these tendencies are subject to stochastic disturbances, however, so that the results of managerial effort (or lack of it) cannot be predicted with certainty, A "behavior" of the manager is a rule that determines his allocation of effort among the activities at each date, as function of the past history of his actions and the activities' performance.