Optimal Procurement and Investment in New Technologies under Uncertainty

We study a buyer's optimal investment strategy for new technologies when costs evolve stochastically and are private information to the suppliers. In a continuous time setting, we show how the asymmetric information on the stochastic variables leads to delays in investment compared to the real option benchmark. We also suggest a payment structure that implements the buyer's optimal investment timing as a Vickrey-type auction

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Year of publication:	2014
Authors:	Arve, Malin
Other Persons:	Zwart, Gijsbert (contributor)
Publisher:	[2014]: [S.l.] : SSRN
Subject:	Theorie \| Theory \| Risiko \| Risk \| Investition \| Investment \| Beschaffung \| Procurement \| Investitionsentscheidung \| Investment decision \| Technischer Fortschritt \| Technological change \| Industrieforschung \| Industrial research

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Extent:	1 Online-Ressource (28 p)
Series:	TILEC Discussion Paper ; No. 2014-028
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 2014 erstellt
Other identifiers:	10.2139/ssrn.2471089 [DOI]
Classification:	C73 - Stochastic and Dynamic Games ; D82 - Asymmetric and Private Information ; D86 - Economics of Contract: Theory
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013050326