Article ID: | iaor20041968 |
Country: | Netherlands |
Volume: | 144 |
Issue: | 1 |
Start Page Number: | 209 |
End Page Number: | 223 |
Publication Date: | Jan 2003 |
Journal: | European Journal of Operational Research |
Authors: | Kort Peter M., Huisman Kuno J.M. |
The aim of this paper is to determine the optimal timing of technology investment of a single firm in a duopoly framework. As time passes different technologies are invented which after sometime become available for the firm to adopt. The question here is not only when a firm should invest but also which technology should be adopted. For different scenarios the optimal technology investment decision is determined. Outcomes range from pre-emption equilibria to equilibria with second mover advantages.