Employment Protection, Flexibility and Firms' Strategic Location Decisions under Uncertainty

Firms' Strategic Choices under Demand Uncertainty (Preliminary and Incomplete)

This paper investigates how r̄ms choose prices and production capacity when facing stochastic demand. With demand uncertainty, ̄rms face demand curves for their goods which implicitly subsume the selling mechanism adopted in the markets for these goods. The selling mechanisms considered in this analysis are bidding markets or auctions, and take-it-or-leave-it sales. They have di®erent implicatio...

Optimizing location, routing and inventory decisions in an integrated supply chain network under uncertainty

This study extends a mathematical model that integrates the location, allocation, inventory replenishment and routing decisions simultaneously. To cope with inherent uncertainty of parameters, we implement a continuous-time Markov process and derive the performance measures of the system. Using the obtained results, the problem is formulated as a mixed integer nonlinear programing model (MINLP)...

Employment protection legislation, multinational firms and innovation

The theoretical effects of labour regulations such as employment protection legislation (EPL) on innovation is ambiguous, and empirical evidence has thus far been inconclusive. EPL increases job security and the greater enforceability of job contracts may increase worker investment in innovative activity. On the other hand EPL increases adjustment costs faced by firms, and this may lead to unde...

Ignorance, Uncertainty, and Strategic Consumption-Portfolio Decisions

This paper constructs a recursive utility version of a canonical Merton (1971) model with uninsurable labor income and unknown income growth to study how the interaction between two types of uncertainty due to ignorance affects strategic consumption-portfolio rules and precautionary savings. Specifically, after solving the model explicitly, we theoretically and quantitatively explore (i) how th...

Strategic Technology Adoption under Technological Uncertainty