1. Interdisciplinary Center for Technological Analysis anf Forecasting, Tel Aviv University, Tel Aviv, Israel;2. Hofstra University, Hempstead, New York, USA.;3. Center for International Studies, M.I.T., Cambridge, Massachusetts, USA.
Abstract:
In this article, a model of technology price estimation is developed. The process of trade in technology is seen as resulting in a partial transfer of the market in which the seller of the technology had previously sold his product to the buyer of the technology. Profit decrease of the seller because of market cuts is taken as the basis for the pricing of technology. The random nature of the useful lifetime of the technology is taken into account, and the influence of seller-firm characteristics on the technology price is analyzed.