Title
Optimal investment in learning-curve technologies Optimal investment in learning-curve technologies
Author
Faculty/Department
Faculty of Applied Economics
Publication type
article
Publication
Amsterdam ,
Subject
Economics
Source (journal)
Journal of economic dynamics and control. - Amsterdam
Volume/pages
36(2012) :10 , p. 1462-1476
ISSN
0165-1889
ISI
000307626900003
Carrier
E
Target language
English (eng)
Full text (Publishers DOI)
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.
E-info
https://repository.uantwerpen.be/docman/iruaauth/b78b9a/39cfb74d88e.pdf
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