This paper investigates the effects of uncertainty emanating from technological improvements on the optimal lifetime of assets. In does so in a dynamic model in which: a) technological change increases continuously the productivity of producers' durables, b) potential competition induces firms...

Optimal age replacement policies for network components such as cables, overhead lines or transformers are usually identified based on gathered knowledge about the state of a component and its stochastic deterioration process. In this context, uncertainty is an important challenge because...

We develop a novel, workable switching option model approach to component redesign and replacement projects that are divisible into sequential phases. The component manufacturer has the option to retain the current product position and abandon the project, or switch to a redesigned product...