Dobbelaere, Sabien; Luttens, Roland Iwan; Peters, Bettina - Center for Operations Research and Econometrics (CORE), … - 2009
an abandonment option. Two types of uncertainty
influence the decision to start R&D. Demand uncertainty is modelled as a … confirmed.
Keywords: investment under uncertainty, R&D, demand uncertainty, technical uncertainty,
entry threat.
JEL … present value (NPV) framework. Besides entry threat, competition and multi-stage R&D,
our model includes demand uncertainty as …