Barlevy, Gadi (contributor); Tsiddon, Daniel (contributor) - 2004 - [Elektronische Ressource]
will be easier to work with the variable
x(s)=V (s)−
Zs
ρ
The variable x(s) has an economic interpretation: it is the value …. After some algebraic manipulation, we can
rewrite (1.6) as a differential equation in terms of x(s):
dx(s)
ds
=
µ
ρx(s)
m
¶
1 …−b
−
Z
ρ
(1.7)
with a boundary condition x(s)=0. As illustrated in the Appendix, we can use the first
condition above to …