We study an optimal timing decision problem where an agent endowed with a risky investment opportunity trades the benefits of waiting for additional information against a potential loss in first-mover advantage. The players’ clocks are de-synchronized in that they learn of the investment opportunity at different times. Previous literature has uncovered an inverted-U shaped relationship between ...

This paper presents the problem of a vendor-buyer integrated production inventory model for two stage supply chain under investment for quality improvement. The buyer faces as a linear demand, which is assumed to be function of its unit selling price. Total profit is the supply chain performance measure and it is computed as the difference between revenue from sales and total cost, where the la...

We provide a strategic rationale for growth options under uncertainty and imperfect competition. In a market with strategic competition, investment confers a greater capability to take advantage of future growth opportunities. This strategic advantage leads to the capture of a greater share of the market, either by dissuading entry or by inducing competitors to 'make room' for the stronger comp...

This paper analyzes a risk averse entrepreneur’s real investment decision under incomplete markets. The entrepreneur smoothes his intertemporal consumption by investing in both a risk-free asset and a risky asset, which allows him to partially hedge against the project cash flow risk. We show that risk aversion lowers both the project value upon investment and the option value of waiting to inv...

This study aims to determine the effect of profitability, collateralizable assets, investment opportunity set, and lagged dividend on policy. The sample companies were selected using purposive sampling technique. After selecting sample, a 35 samples from 7 was obtained multiplied by 5 year period. analysis in this uses normality test, classical assumption hypothesis coefficient determination mu...

This paper examines the foreign financial institutions‟ spillover effects in China‟s banking sector through three channels, foreign strategic investment, employee turnover, and competition using qualitative analyses and quantitative analyses. Through comparing Chinese banks performance between preand postforeign strategic investment, and the OLS regression analyses, we found that the foreign st...

Comparisons with counterfactual outcomes can inXuence choices in sequential decisions. We examine the eVect of anticipated regret, and “social takeover”—the knowledge that someone else might take over an investment one has abandoned—on persistence on an investment task. Some participants received feedback about what would have happened if they had continued investing and others did not. Some kn...