Optimal Management of a Research and Development Project
AbstractThis paper offers a series of models designed to aid in the evaluation and control of an individual research and development project. The project under consideration is assumed to involve costs incurred over a period [0, T] and a return earned at T (or discounted to T) when the project is completed. In two of the models discussed below, the completion time T is regarded as known; in two others, T is taken to be a random variable with a known distribution. In two models, the costs per unit of time of operating the project are assumed to be fixed; in the other two, costs are variable, with increased expenditure resulting in a decreased completion time. Each of the four possible combinations of assumptions is treated in a separate section. The last section contains a summary and discussion of results.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by INFORMS in its journal Management Science.
Volume (Year): 17 (1971)
Issue (Month): 11 (July)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Frank R. Lichtenberg, 1989. "IR&D Project Data and Theories of R&D Investment," NBER Working Papers 2720, National Bureau of Economic Research, Inc.
- Gene M. Grossman & Carl Shapiro, 1988.
"Optimal Dynamic R&D Programs,"
NBER Working Papers
1658, National Bureau of Economic Research, Inc.
- Vesa Kanniainen, 1993.
"Optimal production of innovations under uncertainty,"
Journal of Economics,
Springer, vol. 57(2), pages 147-168, June.
- Kanniainen, Vesa, 1991. "Optimal Production of Innovations Under Uncertainty," Discussion Papers 348, The Research Institute of the Finnish Economy.
- Naevdal, Eric, 2006. "Dynamic optimisation in the presence of threshold effects when the location of the threshold is uncertain - with an application to a possible disintegration of the Western Antarctic Ice Sheet," Journal of Economic Dynamics and Control, Elsevier, vol. 30(7), pages 1131-1158, July.
- Toxvaerd, Flavio, 2007.
"A theory of optimal deadlines,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 31(2), pages 493-513, February.
- Francisco Ruiz-Aliseda & Jianjun Wu, 2007. "Irreversible investment in stochastically cyclical markets," Economics Working Papers 1018, Department of Economics and Business, Universitat Pompeu Fabra.
- Eymen Errais & Jeffrey Sadowsky, 2005. "Valuing Pilot Project Investments in Incomplete Markets : A Compound Option Approach," Computing in Economics and Finance 2005 73, Society for Computational Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).
If references are entirely missing, you can add them using this form.