A finite-state, finite-memory minimum principle, part 2

In part 1 of this paper, a minimum principle was found for the finite-state, finite-memory (FSFM) stochastic control problem. In part 2, conditions for the sufficiency of the minimum principle are stated in terms of the informational properties of the problem. This is accomplished by introducing the notion of a signaling strategy. Then a min-H algorithm based on the FSFM minimum principle is presented. This algorithm converges, after a finite number of steps, to a person - by - person extremal solution.