Brekke, Kjell Arne; Øksendal, Bernt The high contact principle as a sufficiency condition for optimal stopping. (English) Zbl 0783.90019 Stochastic models and option values. Applications to resources, environment and investment problems, Pap. Conf., Loen/Norway 1989, Contrib. Econ. Anal. 200, 187-208 (1991). The high contact principle is essentially a first order condition in the optimization of the stopping time. The typical application of this principle in economics is the starting and stopping of resource extraction. The purpose of the paper is to show that under certain conditions the high contact property is also sufficient for the solution of the optimal stopping problem. In order to derive this result in the multidimensional case the Dynkin formula is generalized using a Green function.For the entire collection see [Zbl 0754.00018]. Reviewer: T.Cipra (Praha) Cited in 18 Documents MSC: 91B62 Economic growth models 60G40 Stopping times; optimal stopping problems; gambling theory 60J60 Diffusion processes 93E03 Stochastic systems in control theory (general) 91B76 Environmental economics (natural resource models, harvesting, pollution, etc.) Keywords:exhaustible resources; high contact principle; resource extraction; optimal stopping; Dynkin formula; Green function PDFBibTeX XMLCite \textit{K. A. Brekke} and \textit{B. Øksendal}, in: Stochastic models and option values. Applications to resources, environment and investment problems. Papers from the conference, held in Loen, Norway, August 1989. Amsterdam: North-Holland. 187--208 (1991; Zbl 0783.90019)