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THE OPTIMAL LIFETIME OF ASSETS UNDER UNCERTAINTY IN THE RATE OF EMBODIED TECHNICAL CHANGE

✍ Scribed by George C. Bitros


Book ID
111044582
Publisher
John Wiley and Sons
Year
2008
Tongue
English
Weight
208 KB
Volume
59
Category
Article
ISSN
0026-1386

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The variable lifetime of assets is analyzed in a serial replacement problem. Technological change impacts the maintenance cost and new asset cost. The optimal asset lifetime appears to be constant only when both costs decrease with the same rate. We identify cases when the technological change decre