An Optimal Control Model of Product Improvement R and D
Abstract
A model is constructed to determine how much to put into a particular R and D program at any time. The problem is formulated in the following way: given a production function for technical change one seeks a path which maximizes the present discounted value of the difference between its benefits and costs. The model is developed within the context of a program in which an organization attempts to improve the performance of one of its systems subject to an arbitrary fiscal constraint which limits the rate of R and D spending on that system.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jul 26, 1971
- Accession Number
- AD0735075
Entities
People
- Robert Shishko
Organizations
- RAND Corporation