Active Product Development
Fuente:
arXiv
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| Autore principale: | |
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| Natura: | Preprint |
| Pubblicazione: |
2025
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| Soggetti: | |
| Accesso online: | |
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| _version_ | 1866918099784040448 |
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| author | Oliveros, Santiago |
| author_facet | Oliveros, Santiago |
| contents | We introduce a dynamic model in which a developer incrementally improves a product of uncertain quality over time, with the quality evolving as a controlled Brownian motion. At each moment in time, the developer can continue exploring by paying a flow cost, restart from a previously attained quality level by paying a fixed cost, or terminate the process by either freely abandoning the project or by incurring a cost to launch the highest quality observed so far. The optimal strategy is characterized by a free boundary of an impulse-controlled Brownian motion. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2507_15438 |
| institution | arXiv |
| publishDate | 2025 |
| record_format | arxiv |
| spellingShingle | Active Product Development Oliveros, Santiago Theoretical Economics We introduce a dynamic model in which a developer incrementally improves a product of uncertain quality over time, with the quality evolving as a controlled Brownian motion. At each moment in time, the developer can continue exploring by paying a flow cost, restart from a previously attained quality level by paying a fixed cost, or terminate the process by either freely abandoning the project or by incurring a cost to launch the highest quality observed so far. The optimal strategy is characterized by a free boundary of an impulse-controlled Brownian motion. |
| title | Active Product Development |
| topic | Theoretical Economics |
| url | https://arxiv.org/abs/2507.15438 |