When is it better to wait for a new version? Optimal replacement of an emerging technology under uncertainty

DOI10.1007/S10479-015-2010-6zbMath1358.91108OpenAlexW1674334050MaRDI QIDQ256619

Michail Chronopoulos, Afzal S. Siddiqui

Publication date: 9 March 2016

Published in: Annals of Operations Research (Search for Journal in Brave)

Full work available at URL: https://discovery.ucl.ac.uk/id/eprint/1471010/

zbMATH Keywords

investment analysisdynamic programmingreal optionsemerging technologies

Mathematics Subject Classification ID

Production theory, theory of the firm (91B38) Corporate finance (dividends, real options, etc.) (91G50)

Related Items (6)

Capacity optimization under uncertainty: the impact of operational time lags ⋮ Rivalry and uncertainty in complementary investments with dynamic market sharing ⋮ Rescaling-contraction with a lower cost technology when revenue declines ⋮ Strategic technology switching under risk aversion and uncertainty ⋮ Optimal regime switching under risk aversion and uncertainty ⋮ Replacement decisions with multiple stochastic values and depreciation

Cites Work

• Technological expectations and adoption of improved technology
• Repeated real options: optimal investment behaviour and a good rule of thumb
• Uncertainty and stepwise investment
• Optimal timing of technology adoption
• Choosing among alternative discrete investment projects under uncertainty
• Strategic technology adoption taking into account future technological improvements: a real options approach
• Renewable energy investments under different support schemes: a real options approach
• Investment decisions in mobile telecommunications networks applying real options
• Irreversible investment in alternative projects
• The net present value method versus the option value of waiting: A note on Farzin, Huisman and Kort (1998)

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