haku: @author Ayres, R. U. / yhteensä: 13
viite: 5 / 13
| Tekijä: | Ayres, R. U. Mori, S. |
| Otsikko: | Time preference and the life cycle : The logic of long-term high risk vs. short-term low risk. |
| Lehti: | European Journal of Operational Research
1989 : FEB 15, VOL. 38:3, p. 329-349 |
| Asiasana: | RESOURCE ALLOCATION R&D |
| Kieli: | eng |
| Tiivistelmä: | This paper argues that time-preference functions (or discount rates) for R&D should properly be considered as functions of environment. In particular, during booms it is rational to prefer a marginal dollar in the present to a marginal dollar in the future. Conversely, during recessions, the other way around. Booms and recessions are likely to occur at the beginning and at the end of life cycle, resp. The implications for R&D policy are derived in terms of a simple model: at the start it is optimal to invest in short-term, low-risk ventures, while at the end long-term, high-risk projects are optimal. |
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