| Article ID: | iaor19941694 |
| Country: | Germany |
| Volume: | 38 |
| Start Page Number: | 11 |
| End Page Number: | 17 |
| Publication Date: | Oct 1993 |
| Journal: | Mathematical Methods of Operations Research (Heidelberg) |
| Authors: | Jrgensen S., Kort P.M. |
| Keywords: | control processes |
In an optimal control model of a firm’s dynamic investment policy, the authors analyze the effects of including learning by doing in the adjustment cost function (the larger the existing capital stock, the smaller the cost of installing an additional unit of capital stock).