THE DECLINING-PRICE PARADOX OF NEW TECHNOLOGIES

被引:2
作者
EDEN, Y
RONEN, B
机构
[1] TEL AVIV UNIV,FAC MANAGEMENT,IL-69978 TEL AVIV,ISRAEL
[2] COLL MANAGEMENT,TEL AVIV,ISRAEL
来源
OMEGA-INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE | 1993年 / 21卷 / 03期
关键词
INNOVATION; LEARNING; PRODUCT LIFE CYCLE; DCF;
D O I
10.1016/0305-0483(93)90091-X
中图分类号
C93 [管理学];
学科分类号
12 [管理学]; 1201 [管理科学与工程]; 1202 [工商管理学]; 120202 [企业管理];
摘要
The declining prices of new technology products often leads decision makers to postpone a capital investment and wait for lower prices. This paper makes a distinction between the prices of technology elements and the prices of components and systems. There are many cases where the price reduction over time applies only to some elements of the system, while the total price of the improved system remains almost the same. In these cases, a declining-price paradox suggests that the more the price of the investment is subject to future reduction, the more urgent it is to invest in this technology immediately. The paper presents a model incorporating learning considerations in investment decision making, and states the conditions where the paradox applies.
引用
收藏
页码:345 / 351
页数:7
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