Optimal timing of price change with strategic customers under demand uncertainty: A real option approach

Strategic Timing of Technological Innovation Investment under Asymmetric Duopoly: A Real Option and Game-theoretic Approach

In an asymmetric duopoly option game-theoretic framework, this paper investigates the firms’ strategic technological innovation investment under uncertainty. There exist three types of equilibria that can occur in the choice of the technological innovation investment strategies, namely the preemptive, sequential and simultaneous equilibrium. The occurrence of a particular type of equilibrium is...

A multi-product green supply chain under government supervision with price and demand uncertainty

In this paper, a bi-level game-theoretic model is proposed to investigate the effects of governmental financial intervention on green supply chain. This problem is formulated as a bi-level program for a green supply chain that produces various products with different environmental pollution levels. The problem is also regard uncertainties in market demand and sale price of raw materials and pro...

Strategic Outsourcing - A Real Option Approach

Optimal Timing of Inventory Decisions with Price Uncertainty

What is the optimal timing of inventory investment for a firm when its forecasts of demand and price improve with time but are correlated with the prices of traded assets in the financial markets? We consider this problem using a single period inventory model where demand and price are realized at time T and the stocking decision may be made at any time in the interval [0, T ]. The processes fo...

Option Contracts and Capacity Management—Enabling Price Discrimination under Demand Uncertainty

W explore using an option contract as a price discrimination tool under demand uncertainty. In our capacity game model, a monopolistic supplier has to build capacity before observing the uncertain demand. The demand is generated by two potential customers, who privately know their own types. The types could be either high or low, differing in willingness to pay for each unit of demand. To discr...