| Article ID: | iaor200494 |
| Country: | Netherlands |
| Volume: | 31 |
| Issue: | 1 |
| Start Page Number: | 77 |
| End Page Number: | 82 |
| Publication Date: | Jan 2003 |
| Journal: | Operations Research Letters |
| Authors: | Smith Robert L., Cheevaprawatdomrong Torpong |
It is commonly assumed that an acceleration in technological improvement should result in a more rapid introduction of new technology. Under a simple technological change model of a constant factor improvement in equipment costs per period, we show that, paradoxically, the effect is to optimally delay the introduction of new technology.