Publication
Title
Optimal investment in learning-curve technologies
Author
Abstract
We study optimal investment in technologies characterized by the learning curve. There are two investment patterns depending on the shape of the learning curve. If the learning process is slow, firms invest relatively late and on a larger scale. If the curve is steep, firms invest earlier and on a smaller scale. We further demonstrate that learning investment differs greatly from investment in technologies without learning effects. Learning investments generate substantial initial losses and are very sensitive to downside risk. We show that the most susceptible to losses and risk are technologies with intermediate speed of learning.
Language
English
Source (journal)
Journal of economic dynamics and control. - Amsterdam
Publication
Amsterdam : 2012
ISSN
0165-1889
Volume/pages
36:10(2012), p. 1462-1476
ISI
000307626900003
Full text (Publisher's DOI)
Full text (publisher's version - intranet only)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
External links
Web of Science
Record
Identification
Creation 26.04.2013
Last edited 03.08.2017
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