Technology abandonment and the time value of diffusion

Albert J. Parvin, Mario G. Beruvides

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

2 Scopus citations

Abstract

The Time Value of Money (TVM) is a foundational concept taught in Engineering Economics, used by decision-makers to determine if an investment is worth pursuing. The concept of the TVM is that money available in the present is worth more than the same amount in the future due to its potential earning capacity. TVM addresses the value of money (i.e., investment) with respect to time, but the inverse, the valuation of time, is really not the concern of economics. The value of money changes over time but does the value of time itself change as it progresses from present to future. One hour spent today is the same as one hour spent tomorrow. Conversely, a dollar spent today will not have the same value as a dollar spent next year based on the core principle of finance that money can earn interest. A standardized economic measure of technology abandonment, referenced to units of time, termed Diffusion Time Value, is a basic technological approach to accessing a technology’s viability. So, the opportunity value of time, related to a technology’s potential economic impact cannot be ignored. This paper explores the characteristics and implications of the Time Value of Diffusion in technology abandonment.

Original languageEnglish
Title of host publicationIISE Annual Conference and Expo 2019
PublisherInstitute of Industrial and Systems Engineers, IISE
ISBN (Electronic)9781713814092
StatePublished - 2019
Event2019 Institute of Industrial and Systems Engineers Annual Conference and Expo, IISE 2019 - Orlando, United States
Duration: May 18 2019May 21 2019

Publication series

NameIISE Annual Conference and Expo 2019

Conference

Conference2019 Institute of Industrial and Systems Engineers Annual Conference and Expo, IISE 2019
Country/TerritoryUnited States
CityOrlando
Period05/18/1905/21/19

Keywords

  • Technology Abandonment
  • Technology Diffusion
  • Time Value

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