Technological expectations and adoption of improved technology
type: Item
instance of: scholarly article
title: Technological expectations and adoption of improved technology
zbMATH Open document ID: 0551.90004
DOI: 10.1016/0022-0531(84)90146-7
author: Yves Balcer
author: Steven A. Lippman
published in: Journal of Economic Theory
publication date: 1984-01-01T00:00:00Z
review text: Attention is focused upon the adoption (demand) rather than the creation (supply) of new technology, which improves from time to time. Based on the expected flow of technological progress over which the firm (demander) has no control, it must decide either to adopt the current best available technology or to postpone adoption. The distinguishing features of the model are that more than one technological innovation is anticipated and expectations about the likelihood of such innovations are revised as time passes since the last innovation. Our analysis shows that the firm will adopt the current best practice if its technological lag exceeds a certain threshold; moreover, as time passes without new technological advances it may become profitable to purchase a technology that has been available even though it was not profitable to do so in the past.
Mathematics Subject Classification ID: 91B38
zbMATH DE Number: 3878620
zbMATH Keywords: adoption of improved technology
zbMATH Keywords: technological innovation
MaRDI profile type: Publication
full work available at URL: 0022-0531(84)90146-7
OpenAlex ID: W2015887084
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description: scientific article; zbMATH DE number 3878620