Assessing Alternative R&D Investment Projects under Uncertainty
نویسندگان
چکیده
منابع مشابه
Investment Under Uncertainty in Information Technology: Acquisition and Development Projects
In this paper, we develop two models for the valuation of information technology (IT) investment projects using the real options approach. The IT investment projects discussed in this paper are categorized into development and acquisition projects, depending upon the time it takes to start benefiting from the IT asset once the decision to invest has been taken. The models account for uncertaint...
متن کاملIrreversible Investment in Alternative Projects
We examine the problem of a risk-neutral investor who has to choose among two alternative projects of different scales under output price uncertainty. We show that as soon as investment in the smaller scale project is sometimes optimal, the optimal investment strategy is not a trigger strategy and the optimal investment region is dichotomous. Whenever the investor has the opportunity to switch ...
متن کاملInvestment in Alternative Energy Technologies under Physical and Policy Uncertainty
Policymakers have often backed alternative energy technologies, e.g., nuclear power, due to their relatively low operating costs and emissions. However, they have also been quick to respond to public perceptions about the safety of such plants by suspending construction or even decommissioning existing facilities. We address public concerns about physical plant risks along with stochastic marke...
متن کاملInvestment Under Uncertainty
Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at http://www.jstor.org/about/terms.html. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your perso...
متن کاملPreemptive Investment under Uncertainty
This paper provides a general characterization of subgame-perfect equilibria for a strategic timing problem, where two firms have the (real) option to invest irreversibly in some market. Profit streams are uncertain and depend on the market structure. The analysis of the problem emphasizes its dynamic nature and exploits only its economic structure. In particular, the determination of equilibri...
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: International Journal of Real Options and Strategy
سال: 2013
ISSN: 2186-4667
DOI: 10.12949/ijros.1.1