Optimal replacement
Subtitle: an extension to consumer durables
By: by Katsuaki Terasawa and David Whipple
Contributors: Whipple, David Richard, 1942-; Naval Postgraduate School (U.S.)
Publisher: Naval Postgraduate School
Published: 1974
Place of publication: Monterey, Calif
Language: eng
Number of pages: 31
Subjects: Mathematical models; Maintenance and repair; Investments; Replacement of industrial equipment; Military supplies
Description: The problem of determining the optimal procedure for the replacement of capital or military equipment has been the subject of numerous studies. However, having been conceived and developed in conjunction with investment and inventory, the study of optimal replacement has never been effectively extended to the area of consumer durable goods. The primary objective of this paper is to study such a problem within the inter-temporal utility maximization framework in which a consumer has a finite, fixed time horizon and derives satisfaction from the consumption of both durable and non-durable goods. In particular, family housing is used to illustrate the choice process.
Notes: Title from cover.

"Prepared for: Naval Postgraduate School"--Cover.

"August 1974"--Cover.

"NPS-55Tc74081"--Cover.

Author(s) subject terms: Optimal replacement, consumer durables, house.

Includes bibliographical references (p. 29)

"Approved for public release; distribution unlimited"--Cover.

Technical report; 1974.