Strategic capacity investment under uncertainty
نویسندگان
چکیده
منابع مشابه
Strategic 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 کاملStrategic Technology Choice and Capacity Investment Under Demand Uncertainty
This paper studies the impact of competition on a firm’s choice of technology (product-flexible or product-dedicated) and capacity investment decisions. Specifically, we model two firms competing with each other in two markets characterized by price-dependent and uncertain demand. The firms make three decisions in the following sequence: choice of technology (technology game), capacity investme...
متن کاملCompetitive Capacity Investment under Uncertainty
We consider a long-term capacity investment problem in a competitive market under demand uncertainty. Two firms move sequentially in the competition and a firm’s capacity decision interacts with the other firm’s current and future capacity. Throughout the investment race, a firm can either choose to plan its investments proactively, taking into account possible responses from the other firm, or...
متن کاملStrategic investment under uncertainty: A synthesis
Research contributions providing insights at the intersection of real options analysis and industrial organization have become numerous in the recent decade. In the present paper, we provide an overview aimed at categorizing and relating these research streams. We highlight managerial insights about the type of competitive reaction, the manner in which information is revealed, the nature of the...
متن کاملInvestment, Capacity Choice and Outsourcing under Uncertainty
In this paper, we formulate a firm’s investment in a production facility with maximum capacity and outsourcing strategy. Existing literature of capacity choice results in an explosive capacity and long delay in investment. Actually, there are slight possibility that a firm installs a facility with an explosive capacity, instead, a firm can outsource production when the demand exceeds its capaci...
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 RAND Journal of Economics
سال: 2015
ISSN: 0741-6261
DOI: 10.1111/1756-2171.12089