Optimizing systematic technology adoption with heterogeneous agents

Optimizing systematic technology adoption with heterogeneous agents

The traditional operational optimization models of systematic technology adoption commonly assume the existence of a global social planner and ignore the existence of heterogeneous decision makers who interact with each other. This paper develops a stylized (or conceptual) optimization model of systematic technology adoption with heterogeneous agents (i.e., decision makers) and uncertain techno...

Technology Adoption in an OLG model with forward-looking agents

We investigate the effects of forward looking behaviour in technology adoption. The setup is an overlapping generation model where agents choose between two alternative networks taking in consideration the installed base as well as the expected base. In other words users not only keep into account the actions of previous players, but also form expectations over future generations’ choices befor...

Matching Heterogeneous Agents with a Linear Search Technology

Steady state equilibria in heterogeneous agent matching models with search frictions have been shown to exist in Shimer and Smith (2000) under the assumption of a quadratic search technology. We extend their analysis to the commonly investigated linear search technology.

Strategic Technology Adoption under Technological Uncertainty

Nash Networks with Heterogeneous Agents

A non-cooperative model of network formation is developed. Agents form links with others based on the cost of the link and its assessed beneÞt. Link formation is one-sided, i.e., agents can initiate links with other agents without their consent, provided the agent forming the link makes the appropriate investment. Information ßow is two-way. The model builds on the work of Bala and Goyal, but a...