Replacement Investment: Optimal Economic Life Under Uncertainty
在连续时间框架下研究替换投资的最优停止问题，分析不确定性如何影响新投资时机和现有设备终止寿命的决策标准。
Replacement investment is essentially a regenerative optimal stopping problem; that is, the key decision concerns when to terminate the life of existing plant – and hence when to start over again. This paper examines this optimisation problem within a continuous time framework and studies the qualitative and quantitative impact of uncertainty on the timing of new investment (and the criteria that should be used for terminating the life of existing plant).