Showing 1 - 10 of 32
Abstract: We analyse a newspaper market where two editors first choose the political position of their newspaper, then set cover prices and advertising tariffs. We build on the work of Gabszewicz, Laussel and Sonnac (2001, 2002), whose model of competition among newspaper publishers we take as...
Persistent link: https://www.econbiz.de/10011091765
This paper revisits the important result of the real options approach to investment under uncertainty, which states … that increased uncertainty raises the value of waiting and thus decelerates investment.Typically in this literature … uncertainty.It is shown that this particularly happens when uncertainty is limited and project life is short. …
Persistent link: https://www.econbiz.de/10011092584
Abstract: A stylised fact of monetary policy making is that central banks do not immediately respond to new information but rather seem to prefer to wait until sufficient ‘evidence’ to warrant a change has accumulated. However, theoretical models of inflation targeting imply that an...
Persistent link: https://www.econbiz.de/10011092689
Abstract I analyze optimal natural resource use in an intergenerational model with the risk of a catastrophe. Each generation maximizes a weighted sum of discounted utility (positive) and the probability that a catastrophe will occur at any point in the future (negative). The model generates...
Persistent link: https://www.econbiz.de/10011092719
How to compensate people who provide relevant information to a decision-maker who faces uncertainty?This paper suggests …
Persistent link: https://www.econbiz.de/10011092736
Persistent link: https://www.econbiz.de/10011092917
Persistent link: https://www.econbiz.de/10011090291
Depreciation is not only a representation of the loss in asset-value over time.It is also a strategic tool for management and can be used to minimize tax payments.In this paper we derive the depreciation scheme that minimizes the expected value of the present value of future tax payments for two...
Persistent link: https://www.econbiz.de/10011090373
Persistent link: https://www.econbiz.de/10011090391
The paper deals with the issue of budget setting to the divisions of a company. The approach is quantitative in nature both in the formulation of the requirements for the set-budgets, as related to different general managerial objectives of interest, and in the modelling of the inherent...
Persistent link: https://www.econbiz.de/10011090567