Technology adoption under price uncertainty

Strategic Technology Adoption under Technological Uncertainty

strategic technology adoption under technological uncertainty

Optimal Scrapping and Technology Adoption under Uncertainty

A firm has to decide sequentially to replace its technology and to implement a new one chosen among an increasing range over time under technological and market uncertainty. The optimal decision rule is a (s, S) style policy where the trigger and target technology levels are positively correlated with boom persistence and negatively related with recession persistence and technological uncertain...

Technology Adoption under Relative Factor Price Uncertainty: The Putty-Clay Investment Model

A plant has more flexibility in choosing among different technologies before undertaking an investment than after installing a specific machine. This paper argues that the irreversibility of factor intensity choice may play an important role in explaining the dynamics of investment in the presence of relative factor price uncertainty. A higher degree of irreversibility in the choice of factor i...

Adjustment Costs, Learning-by-Doing, and Technology Adoption under Uncertainty

We consider a variety of vintage capital models of a firm’s choice of technology under uncertainty in the presence of adjustment costs and technology-specific learning. Similar models have been studied in a deterministic setting. Part of our objective is to examine the robustness of the implications of the certainty models to uncertainty. We find that the answer crucially depends on the specifi...