Many institutions worldwide are considering how to include uncertainty about future changes in sea-levels and storm surges into their investment decisions regarding large capital infrastructures. Here we examine how to characterize deeply uncertain climate change projections to support such decisions using Robust Decision Making analysis. We address questions regarding how to confront the poten...

Land development is a typical one-shot decision for private investors due to the huge investment expense and the fear of substantial loss. In this paper, a private real estate investment problem is analyzed within a one-shot decision framework, which is used for a situation where a decision is made only once. The one-shot decision framework involves two steps. The first is to identify which sta...

a r t i c l e i n f o Keywords: R&D R&D investment Resource-based view Decision factors This study investigates the decision factors regarding R&D investment activities. The subjects in this empirical study are from the countries of Taiwan, Japan, and Korea, which are all similar in the level of regional economic development and technology manufacturing. The research samples consist of the fina...

A resource investment problem is a project-scheduling problem in which the availability levels of the resources are considered decision variables and the goal is to find a schedule and resource requirement levels such that some objective function optimizes. In this paper, we consider a resource investment problem in which the goal is to maximize the net present value of the project cash flows. ...

This article studies optimal investment in flexible manufacturing capacity as a function of product prices (margins), investment costs and multivariate demand uncertainty. We consider a two-product firm that has the option to invest in product-dedicated resources and/or in a flexible resource that can produce either product, but has to make its investment decision before demands are observed. T...

Real world investment decisions are generally made sequentially over time. The possibility of subsequent decisions like suspending a project must be considered when an initial investment decision is made. This seems to be particularly important in the case of investments, which take a long 'time to build'. This paper analyzes the impact of lags between the initial investment decision and the co...

Many investments create both fixed assets and options for future investments, or “growth options”. It is natural to expect these future growth options to affect the timing of the initial decision to invest. This paper examines the impact of growth options on this initial decision in a capacity expansion context. We show that the impact of the growth options depends on whether the initial invest...

The aim of this paper is to develop an optimization model for quality improvement by considering quality investment in rework policies and supply chain profit sharing. To improve product’s quality, the decision of process target and its tolerance is important since it directly affects the defective rate, manufacturing cost, and loss to customer due to the deviation of product from its specifica...

This research presents evidence that decision support systems can play an important role in debiasing behaviorally-challenged investors. An empirical study involving 119 participants provides strong evidence for the existence of cognitive biases in investment decision-making and demonstrates the effectiveness of decision aids in lowering the negative impact of such biases on the ability of inve...

Abstract This study investigates the role of default options in relationship between trait anxiety, and decision-making styles financial decisions. One hundred ninety-four participants were divided into three groups subjected to different conditions. Under each experimental condition, they had decide whether accept or reject investment proposals. In first group, been enrolled plans by (opt-out ...