Accounting for strategic investment decision-making under extreme uncertainty
نویسندگان
چکیده
منابع مشابه
Decision Making under Extreme Uncertainty
Beliefs about an unknown distribution can be defined as a measure on the space of probability density functions. This paper (1) characterizes the set of beliefs that satisfy invariance postulates (2) establishes that updating invariant beliefs leads to a posterior distribution with tail asymptotically approaching 1 x(lnx)n . Note to seminar participant at Wharton: Part I of this paper is primar...
متن کاملStrategic control in decision-making under uncertainty.
Complex economic decisions - whether investing money for retirement or purchasing some new electronic gadget - often involve uncertainty about the likely consequences of our choices. Critical for resolving that uncertainty are strategic meta-decision processes, which allow people to simplify complex decision problems, evaluate outcomes against a variety of contexts, and flexibly match behavior ...
متن کاملStrategic Capacity Investment Under Uncertainty
Contrary to most of the papers in the literature of investment under uncertainty we study models that not only capture the timing, but also the size of the investment. We consider a monopoly setting as well as a duopoly setting and compare the results with the standard models in which the firms do not have the capacity choice. Our main results are the following. First, for low uncertainty value...
متن کاملTechnology Investment Decision-Making under Uncertainty in Mobile Payment Systems
Innovations in the mobile payments industry provide potentially profitable investment opportunities for banks. Nonetheless, significant uncertainties are associated with decision-making for this IT investment context, regarding future market conditions, technology standards, and consumer and merchant responses, especially their willingness to adopt. As a result, traditional capital budgeting ap...
متن کاملRobust Decision Making under Strategic Uncertainty in Multiagent Environments
We introduce the notion of strategic uncertainty for boundedly rational, non-myopic agents as an analog to the equilibrium selection problem in classical game theory. We then motivate the need for and feasibility of addressing strategic uncertainty and present an algorithm that produces decisions that are robust to it. Finally, we show how agents’ rationality levels and planning horizons alter ...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: The British Accounting Review
سال: 2016
ISSN: 0890-8389
DOI: 10.1016/j.bar.2015.12.002