Paper Info
Title
Information Technology Investment and Adoption: A Rational Expectations Perspective
Abstract
This study examines the potential applications of the Rational Expectations Hypothesis (REH) in information technology (IT) investment and adoption decision-making. Although REH has been widely used in other areas of microeconomics and macroeconomics, we have not yet seen common use of the related theory in the Information Systems (IS) field. In this paper, weintroduce REH theory together with some of its applications in non-IS/IT areas. Despite the fact that rationality is commonly assumed in economic analyses, the REHs rather strong assumptions make it a unique theory and allow us to offer new perspectives on IS/IT adoption and investment decisionmaking. We discuss how the theory can potentially be applied in IS/IT cases by presenting several illustrative examples. We then examine issues in the evaluation of adoption and investments of new and emerging ITs. Based on the theory, we argue that managers that are risk-averse are most likely to wait and adopt or invest in new andemerging technologies later than managers that are risk-takers. We suggest that for the earlier adoption or investments, the conventional method for estimating investment value may not be appropriate. We also suggest research directions with regard to the application of REH in the IS field.
Year
DOI
Venue
2003
10.1109/HICSS.2003.1174595
HICSS
Keywords
Field
DocType
decisionmaking,weintroduce reh theory,investment decisionmaking,unique theory,it case,information technology investment,investment value,rational expectations hypothesis.,adoption decision-making,. adoption,earlier adoption,related theory,rational expectations,it area,economic theory,it adoption,it investments,information system,information technology,decision theory,rational expectations hypothesis,investment,rational expectation,technology management,economics,information systems,emerging technology,risk aversion
Information system,Investment value,Public economics,Economics,Rationality,Information technology,Microeconomics,Knowledge management,Emerging technologies,Decision theory,Rational expectations,Technology management
Conference
ISBN
Citations 
PageRank 
0-7695-1874-5
2
0.45
References 
Authors
2
2
Name
Order
Citations
PageRank
Yoris A. Au136921.63
Robert J. Kauffman23467349.99