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Agliardi, Elettra
(1990)
On the Optimal Rate of Obsolescence.
Bologna:
Dipartimento di Scienze economiche DSE,
p. 24.
DOI 10.6092/unibo/amsacta/5270.
In: Quaderni - Working Paper DSE
(95).
ISSN 2282.6483.
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Abstract
In this paper the decision of adopting of new technologies is studied trought a multistage model. It incorporates multiple sequential technological innovations and the possibility of implementing that have already been discovered. It is shown how such decision is effected by the relevant parameters, that is, the cost of adoption, the probability of discovery, the discount factor Moreover, it is studied how the decision about adoption is effected by the presence of a rival.
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