Technology adoption with finite horizons

Legislative Bargaining with Long Finite Horizons

Institutional rules provide natural deadlines for negotiations in legislative bargaining. In the continuous-time bargaining model framework of Ambrus and Lu (2010) we show that as the time horizon of the bargaining increases, equilibrium payoffs with deadline converge to stationary equilibrium payoffs of the infinite-horizon bargaining game. We provide a characterization of these limit payoffs,...

Strategic Technology Adoption under Technological Uncertainty

New Horizons in Audit Technology

Advances in technology make it possible for the EDP auditor to work smarter, faster, and deliver added value on every audit. In part this is true because the commoditization of computer hardware means that every auditor can carry a powerful computer everywhere. The software tools that help to realize the productivity potential of the hardware fall broadly into the categories of document managem...

Optimal Portfolio Selection with Transaction Costs and Finite Horizons

We examine the optimal trading strategy for a CRRA investor who maximizes the expected utility of wealth on a finite date and faces transaction costs. Closed-form solutions are obtained when this date is uncertain. We then show a sequence of analytical solutions converge to the solution to the problem with a deterministic finite horizon. Consistent with the common life-cycle investment advice, ...

Optimizing systematic technology adoption with heterogeneous agents

The traditional operational optimization models of systematic technology adoption commonly assume the existence of a global social planner and ignore the existence of heterogeneous decision makers who interact with each other. This paper develops a stylized (or conceptual) optimization model of systematic technology adoption with heterogeneous agents (i.e., decision makers) and uncertain techno...