Abstract
This paper provides a method of finding the optimal expansion process and discusses the marginal analysis for expansion of the competence set when the cost functions are asymmetric. The concept of tree expansion process is introduced, and a method of finding the optimal tree expansion process is given. The paper also shows a way to identify the optimal competence set when both the expected return and cost are considered.
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Shi, D.S., Yu, P.L. Optimal expansion and design of competence sets with asymmetric acquiring costs. J Optim Theory Appl 88, 643–658 (1996). https://doi.org/10.1007/BF02192202
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DOI: https://doi.org/10.1007/BF02192202