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Information Acquisition and Technology Adoption

Authors: Canan Ulu; James Smith;

Information Acquisition and Technology Adoption

Abstract

Summary form only given. We consider a discrete-time dynamic programming formulation of a technology adoption problem where a firm is offered a technology whose value is uncertain and possibly non-stationary. The firm can choose to adopt, reject or gather more information. After receiving the information, the firm updates beliefs in a Bayesian manner. We show that if the firm is more optimistic about the value of the technology, the optimal action moves towards adoption. Furthermore, if the precision of information increases, the firm obtains more value. These results hold without restricting the beliefs of the firm to a specific probability distribution; the ordering of distributions on "optimism" requires likelihood ratio dominance and the notions of "precision" uses Blackwell's notion of sufficiency

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
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Average
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