On a resource allocation model with infinite horizon

In this paper we treat a resource allocation model defined on an infinite interval. We show that the solution of the corresponding problem with finite horizon cannot be extended to a solution of the infinite horizon problem, since the resource allocation problem in the unmodified setting does not have a solution on an unbounded interval. To change this situation we bring an additional state constraint into the model which contains a weight function. The new problem, called now the adapted resource allocation problem, has an optimal solution which will be identified by means of the duality concept of Klotzler. (C) 2008 Elsevier Inc. All rights reserved.