Now showing items 1-8 of 8
Stepwise Investment and Capacity Sizing under Uncertainty
(Discussion paper;10/15, Working paper, 2015-02-13)
The relationship between uncertainty and managerial flexibility is particularly crucial in addressing capital projects. We consider a firm that can invest in a project in either a single (lumpy investment) or multiple ...
Transfer of risk in the newsvendor model with discrete demand
(Journal article; Peer reviewed, 2012)
In this paper we consider the transfer of risk in a newsvendor model with discrete demand. We view the newsvendor model as a leader/follower problem where the manufacturer (leader) decides the wholesale price and the ...
Foreign direct investment and local cooperation : a contingent claims approach
(Discussion paper2000:26, Working paper, 2000-12)
We address key issues that a foreign investor needs to evaluate when deciding whether to enter into a joint venture with a local partner. We explicitly show how the values depend on the valuation methodology, i.e., the ...
Mixed contracts for the newsvendor problem with real options
(Discussion paper2011:6, Working paper, 2011-04)
When is it better to wait for a new version? : optimal replacement of an emerging technology under uncertainty
(Discussion papers;26/14, Working paper, 2014-06)
We determine the optimal timing for replacement of an emerging technology facing uncertainty in both the output price and the arrival of new versions. Via a sequential investment framework, we determine the value of the ...
Country risk, country risk indices, and valuation of FDI : a real options approach
(Discussion paper2001:6, Working paper, 2001-03)
Country risk and in particular political risk may constitute a large part of the total risk investors face when investing in emerging markets. It is not a straightforward task to quantify and include these types of risks ...
Sequential Investment in Emerging Technologies under Policy Uncertainty
(Discussion paper;10/16, Working paper, 2016-06-14)
Investment in emerging technologies is particularly challenging, since, apart from uncertainty in revenue streams, firms must also take into account both policy uncertainty and the random arrival of innovations. We assume ...
Strategic Technology Switching under Risk Aversion and Uncertainty
(Discussion paper;10/17, Working paper, 2017-09-12)
Sequential investment opportunities or the presence of a rival typically hasten investment under risk neutrality. By contrast, greater price uncertainty or risk aversion increase the incentive to postpone investment in the ...