Abstract
In an optimal control model of a firm's dynamic investment policy, we analyze the effects of including learning by doing in the adjustment cost function (the larger the existing capital stock, the smaller the cost of installing an additional unit of capital stock).
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The authors wish to thank two anonymous reviewers for valuable comments. The research of the second author was sponsored by a fellowship of the Royal Netherlands Academy of Arts and Sciences.
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Jørgensen, S., Kort, P.M. Optimal dynamic investment with learning by doing in the adjustment cost function. ZOR Zeitschrift für Operations Research Methods and Models of Operations Research 38, 11–17 (1993). https://doi.org/10.1007/BF01416003
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DOI: https://doi.org/10.1007/BF01416003