Quasi-analytical solution of an investment problem with decreasing investment cost due to technological innovations

DOI10.1016/J.JEDC.2021.104154zbMath1475.91397OpenAlexW3165167855MaRDI QIDQ2246762

Yanyan Li

Publication date: 16 November 2021

Published in: Journal of Economic Dynamics \& Control (Search for Journal in Brave)

Full work available at URL: https://doi.org/10.1016/j.jedc.2021.104154

zbMATH Keywords

technology adoptionoptimal stopping probleminvestment modeldecreasing investment costtwo-factor model

Mathematics Subject Classification ID

Applications of Brownian motions and diffusion theory (population genetics, absorption problems, etc.) (60J70) Point processes (e.g., Poisson, Cox, Hawkes processes) (60G55) Corporate finance (dividends, real options, etc.) (91G50)

Related Items (2)

Investment timing and capacity choice in duopolistic competition under a jump-diffusion model ⋮ Investments with declining cost following a Lévy process

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