Public energy productivity investment influences the amount of future energy consumption. If a present government expects its successor to value the social costs of fuel usage differently, this adds a strategic component to its investment

Strategic use of IT has been the subject of considerable interest among researchers and practitioners, spurred by Carr(2003) and research about ‘IT productivity paradox’. The gist of debate is whether IT investment leads to competitive advantage or not. Even though IT is consist of multiple dimensions, previous studies consider the IT as one unit and oversimplify it. We examine how IT is strate...

Purpose – The purpose of this paper is to define the strategic processes or processes with strategic nature of investment companies (ICs). This goal is achieved by proposing a methodology for selecting strategic processes among the processes of ICs based on the Balanced Scorecard (BSC) framework and the statistical analysis. Design/methodology/approach – Ten leading Iranian Investment Companies...

The research addresses the management dilemma of a decrease in the number of capital project investments, due to the current methods of capital budgeting (i.e. net present value analysis using discounted cash flows) being ineffective, because it does not effectively deal with uncertainty in the investment, and also does take management's flexibility into account. It has been determined that a s...

This paper examines strategic investment games between two firms that compete for optimal entry in a project that generates uncertain revenue flows. Under asymmetry on both the sunk cost of investment and revenue flows of the two competing firms, we investigate the value of real investment options and strategic interaction of investment decisions. Compared to earlier models that only allow for ...

In recent years, an increasing number of companies have been struggling to justify strategic technology investments using traditional capital budgeting systems. The existing accountingbased decision models (such as discounted cash-flow) are said to be no longer adequate to help evaluate investments in technological innovation, mainly because of the strategic, intangible nature of the benefits i...

Markets for natural resources and commodities are often oligopolistic. In these markets, production capacities are key for strategic interaction between the oligopolists. We analyze how different market structures influence oligopolistic capacity investments and thereby affect supply, prices and rents in spatial natural resource markets using mathematical programing models. The models comprise ...

We study the incentives that agents have to invest in costly protection against cascading failures in networked systems. Applications include vaccination, computer security, and airport security. Agents are connected through a network and can fail either intrinsically or as a result of the failure of a subset of their neighbors. We characterize the equilibrium based on an agent’s failure probab...

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...