Product and Quality Innovations as a Distributed
Optimal Control Problem
Anton A. Bondarev
University of Bielefeld - Department of Business Administration and Economics
July 27, 2011
Abstract:
This paper introduces the distributed optimal control model which combines quality-improving and variety-enhancing innovations of hetero-geneous type. Each newly invented product has its own dimension of quality and its characteristics are di erent from other invented products.The single agent is optimizing his stream of investments into the process of creation of new products together with investments into the improvement of already invented products. The role of heterogeneity of the investment characteristics of these new products is analyzed and it is demonstrated that this heterogeneity plays the essential role in the dynamics of the model.
Number of Pages in PDF File: 25
Keywords: Innovations, Economic Dynamics, Multiproduct Monoply, Distibuted Control
JEL Classification: C02, L0, O31
working papers series
Suggested Citation
Bondarev, Anton A., Product and Quality Innovations as a Distributed
Optimal Control Problem (July 27, 2011). Available at SSRN: http://ssrn.com/abstract=2005090 or http://dx.doi.org/10.2139/ssrn.2005090
