traction only has 1 fixed point</p></li>
<li><p>Bellman update is a contraction on the space of utility vectors and therefore converges</p></li>
<li><p>error is reduced by factor of <span class="math notranslate nohighlight">\(\gamma\)</span> each iteration</p></li>
</ul>
</li>
<li><p>also, terminating condition: if <span class="math notranslate nohighlight">\( \vert  \vert U_{i+1}-U_i \vert  \vert  &lt; \epsilon (1-\gamma) / \gamma\)</span> then <span class="math notranslate nohighlight">\( \vert  \vert U_