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A New Policy Evaluation Algorithm for Markov Decision Processes with Quasi Birth-Death Structure

ABSTRACT This paper describes a new algorithm for policy evaluation for Markov decision processes (MDP) that possess a quasi birth-death structure. The proposed algorithm is based on matrix analytic methods which use probabilistic concepts associated with restricting the underlying Markov process to certain state subsets. A telecommunications application example shows that the method offers significant computational reduction compared to a standard MDP policy evaluation approach.