A transformation method for stochastic control problems with partial observations

Two stochastic control problems with partial observations are studied, one where the policy or control law depends only on the latest observation (the controller does not have recall of observations), and the other with the s tandard partial observations model. The equivalent full observation problem s are formulated, and the equivalence is proven using a new method. The res ults are illustrated with a simple example. (C) 1998 Elsevier Science B.V. All rights reserved.