The Declining Price of Personal Computers the Question of When to Invest

44 Pages Posted: 31 Oct 2008

See all articles by Boaz Ronen

Boaz Ronen

Tel Aviv University - The Leon Recanati Graduate School of Business Administration

Yoram Eden

College of Management (Israel)

Date Written: April 1989

Abstract

When should a manager invest in new technology? This paperprovides guidelines for deciding when to invest inmicrocomputers. The authors argue that the technology andmarketplace of micros today fits the conditions of thedeclining cost paradox observed by Eden and Ronen (1988).Under these conditions, a decision to defer purchasingequipment until the future to take advantage of hardwareprice decreases may lead to higher overall costs. The paperconcludes with recommendations for the manager confrontedwith the decision of when to purchase microcomputertechnology.

Suggested Citation

Ronen, Boaz and Eden, Yoram, The Declining Price of Personal Computers the Question of When to Invest (April 1989). NYU Working Paper No. IS-89-047, Available at SSRN: https://ssrn.com/abstract=1289692

Boaz Ronen (Contact Author)

Tel Aviv University - The Leon Recanati Graduate School of Business Administration ( email )

P.O. Box 39010
Ramat Aviv Tel Aviv 69972, 69978
Israel

Yoram Eden

College of Management (Israel) ( email )

7 Yitzhak Rabin Boulevard
P. O. Box 9141
Rishon LeZion, 75190
Israel

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