Remark. Exact occupation flows and expected-cost relaxations [ftip-00MB]

Suppose the abstraction is exact: \(Q_t(\cdot \mid h,a)= P_t(\cdot \mid \phi _t(h),a)\) for all histories and actions, and terminal quality is exactly \(q(h_H)=r(\phi _H(h_H))\). A one-sided terminal bound with zero error would not imply this equality. Retain the exact legal actions and hard-budget state from Definition [ftip-00M9].

Introduce nonnegative state masses \(z_t(s)\) and action masses \(x_t(s,a)\), with \(z_0=\nu \). For \(0\leq t<H\), impose

\[ \sum _{a\in A_t(s)}x_t(s,a)=z_t(s), \qquad z_{t+1}(s')=\sum _{s\in S_t}\sum _{a\in A_t(s)} x_t(s,a)P_t(s'\mid s,a). \]

The linear program maximizes \(\sum _s z_H(s)r(s)\). Every full-history controller induces these flows because the next-state law given a state and action is exact. Conversely, at positive mass choose action \(a\) with probability \(x_t(s,a)/z_t(s)\); at zero mass choose any legal action. Induction on time reproduces the flows in the original history model. Hence the LP optimum equals its mathematical controller frontier. For \(H=0\), there are no action flows and the value is \(\nu r\).

Set \(W_H=r\) and recurse with \(W_t(s)=\max _{a\in A_t(s)}\sum _{s'}P_t(s'\mid s,a)W_{t+1}(s')\). A maximizing action exists by finiteness and gives a policy attaining \(\nu W_0\); the Bellman upper bound gives the reverse inequality. This proves equality with the optimum and exhibits matching lower and upper certificates. It does not establish an efficient implementation of the policy. The flow construction is the scalar finite-horizon specialization of Mifrani and Noll, Section 3; the hard-budget encoding is an additional modeling requirement here.

If hard admission is replaced by constraints on expected cost, the resulting program describes a different class. For \(B>0\), a one-step cost equal to \(2B\) or zero with probability \(1/2\) each has expectation \(B\), yet violates cap \(B\) with probability \(1/2\). An expected-cost model can upper-bound the hard-budget frontier only when it is a valid relaxation containing every hard-feasible policy. Its own policies need not respect the realized cap.