Title
Network economics and optimal replacement of age-structured IT capital
Document Type
Article
Publication Date
6-1-2007
Abstract
The constructed hierarchical optimization model of vintage capital replacement takes into account network effects and the age-dependent technological structure of capital equipment. It involves the control of a network coalition choice, endogenous investments, capital structure, and capital lifetime. The qualitative analysis of the model shows how the lifetime and financial structure of the IT capital depends on technological change. These results are relevant for strategic management on a firm level. Provided numeric examples simulate the optimal lifetime of personal computers. © Springer-Verlag 2007.
Recommended Citation
Yatsenko, Y., & Hritonenko, N. (2007). Network economics and optimal replacement of age-structured IT capital. Retrieved from https://digitalcommons.pvamu.edu/mathematics-facpubs/75