Paper Info
Title
Strategic technology adoption taking into account future technological improvements: A real options approach
Abstract
This paper studies a dynamic duopoly in which firms compete in the adoption of new technologies. The innovation process is exogenous to the firms. It is assumed that there are two technologies. Technology 1 already exists at time zero and can be adopted any time at a given one-time cost. This is standard and leads to a preemption game. What is new in the paper is the presence of technology 2 that becomes available for adoption at some unknown time in the future. Technology 2 is superior to technology 1 but firms cannot adopt it if they have adopted technology 1 before technology 2 arrives.
Year
DOI
Venue
2004
10.1016/S0377-2217(03)00421-1
European Journal of Operational Research
Keywords
DocType
Volume
Investment analysis,Technological uncertainty,Preemption,Real options
Journal
159
Issue
ISSN
Citations 
3
0377-2217
15
PageRank 
References 
Authors
1.72
2
2
Name
Order
Citations
PageRank
Kuno J. M. Huisman14710.02
Peter M. Kort220544.47