Investment Cost Minimization for Communications Satellite Capacity: Refinement and Application of the Chenery-Manne-Srinivasan Model

Chenery, Manne, and Srinivasan contributed to a model of investment in capacity expansion assuming a demand growth rate, a discount rate, and economies of scale. In their model, minimizing the sum of discounted future capacity investment costs always requires capacity replenishments to be equally spaced in time if summation is over an infinite time horizon. But the model assumes a static technology, no depreciation, and no effect of price on demand.

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Year of publication:	1975
Authors:	Snow, Marcellus S.
Published in:	Bell Journal of Economics. - The RAND Corporation, ISSN 0361-915X. - Vol. 6.1975, 2, p. 621-643
Publisher:	The RAND Corporation

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Extent:	application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005353592