Chronopoulos, Michail; Siddiqui, Afzal - Institutt for foretaksøkonomi, Norges Handelshøyskole … - 2014
We determine the optimal timing for replacement of an emerging technology facing uncertainty in both the output price and the arrival of new versions. Via a sequential investment framework, we determine the value of the investment opportunity, the value of the project, and the optimal investment...