IDEAS home Printed from https://ideas.repec.org/a/oup/oxecpp/v42y1990i2p336-55.html
   My bibliography  Save this article

Dynamic Modelling of Innovation Process Adoption with Risk Aversion and Learning

Author

Listed:
  • Tsur, Yacov
  • Sternberg, Menachem
  • Hochman, Eithan

Abstract

This paper presents a model that incorporates dynamic factors of how firms decide on the adoption of an innovation process. Two factors in particular are considered: learning by using and expectations about future prices of the innovation. The firm's diffusion path is derived from a dynamic optimization task allowing for the decisionmakers to be risk averse. The paper investigates the effects of risk aversion, learning, and firm size. Various properties of the model are illustrated numerically. Copyright 1990 by Royal Economic Society.

Suggested Citation

  • Tsur, Yacov & Sternberg, Menachem & Hochman, Eithan, 1990. "Dynamic Modelling of Innovation Process Adoption with Risk Aversion and Learning," Oxford Economic Papers, Oxford University Press, vol. 42(2), pages 336-355, April.
    • Handle: RePEc:oup:oxecpp:v:42:y:1990:i:2:p:336-55
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0030-7653%28199004%292%3A42%3A2%3C336%3ADMOIPA%3E2.0.CO%3B2-E&origin=bc
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:oxecpp:v:42:y:1990:i:2:p:336-55. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/oep .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.