Information Acquisition and Technology Adoption in a Partnership

33 Pages Posted: 14 Aug 2018

See all articles by Yunke Mai

Yunke Mai

University of Kentucky - Gatton College of Business and Economics

Saša Pekeč

Fuqua School of Business, Duke University

Date Written: July 28, 2018

Abstract

We study information acquisition and technology adoption decisions in a partnership. Using classical information acquisition and technology adoption results for a single decision-maker (SDM policy; McCardle 1985) as a benchmark, we establish that it could be optimal for the partnership to prematurely adopt/reject the technology. Furthermore, anticipating premature decisions in a later period could trigger unraveling which leads to a series of premature decisions in earlier periods. Finally, for a given precision of the partnership’s belief of the success probability of the technology, the structure of the optimal policy may be non-monotonic in the belief, due to the non-convexity and discontinuity of the associated coupled optimization problem. Thus, the presence of a partner may have a non-trivial and profound impact on the prescribed optimal information acquisition and technology adoption decisions.

Keywords: Technology Adoption; Information Acquisition; Decision Analysis; Group Decision Making

Suggested Citation

Mai, Yunke and Pekeč, Saša, Information Acquisition and Technology Adoption in a Partnership (July 28, 2018). Available at SSRN: https://ssrn.com/abstract=3221843 or http://dx.doi.org/10.2139/ssrn.3221843

Yunke Mai (Contact Author)

University of Kentucky - Gatton College of Business and Economics ( email )

550 South Limestone
Lexington, KY 40506
United States

Saša Pekeč

Fuqua School of Business, Duke University ( email )

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