Stochastics of innovation processes (Q1117132): Difference between revisions
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Revision as of 03:15, 5 March 2024
scientific article
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English | Stochastics of innovation processes |
scientific article |
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Stochastics of innovation processes (English)
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1989
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The stopping rule paradigm in optimal stochastic control theory is used to examine the effects of uncertainty and market structure on the R \& D process in an economy. A class of stochastic models is proposed which analyzes important questions concerning the amount of R \& D and the timing of the introduction of innovations to the marketplace. The firm undertaking R \& D maximizes an expected discounted payoff subject to the dynamics of the R \& D process. The best strategy is to stop at some optimal value.
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stopping rule paradigm
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uncertainty
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market structure
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R \& D process
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innovations
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