The Declining Price of Personal Computers: The Question of When to Invest

Article type: Research Article

Authors: Ronen, Boaz^a | Lucas Jr., Henry C.^b | Eden, Yoram^a

Affiliations: [a] Faculty of Management, Tel Aviv University | [b] Leonard N. Stern School of Business, New York University

Abstract: When should a manager invest in new technology? This paper provides guidelines for deciding when to invest in microcomputers. The authors argue that the technology and marketplace of micros today fits the conditions of the declining cost paradox observed by Eden and Ronen (1988). Under these conditions, a decision to defer purchasing equipment until the future to take advantage of hardware price decreases may lead to higher overall costs. The paper concludes with recommendations for the manager confronted with the decision of when to purchase microcomputer technology.

Keywords: Personal Computers, Declining Cost Paradox, Investing in Technology, Management of Computing, Information Systems

DOI: 10.3233/HSM-1990-9306

Journal: Human Systems Management, vol. 9, no. 3, pp. 187-194, 1990