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2025-07-22 08:19:30

Active Product Development
Santiago Oliveros
https://arxiv.org/abs/2507.15438 https://arxiv.org/pdf/2507.15438

Active Product Development
We introduce a dynamic model in which a developer incrementally improves a product of uncertain quality over time, with the quality evolving as a controlled Brownian motion. At each moment in time, the developer can continue exploring by paying a flow cost, restart from a previously attained quality level by paying a fixed cost, or terminate the process by either freely abandoning the project or by incurring a cost to launch the highest quality observed so far. The optimal strategy is character…