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We develop a new approach to dealing with real options problems with uncertain maturity. This type of situation is typical for Ramp;D investments and mine or oil exploration projects. These types of projects are characterized by significant on-going investment costs until completion. Since time...
Persistent link: https://www.econbiz.de/10012760295
) competition in the development and marketing of the resulting product. The competitive interactions that occur substantially … to deal with investments under uncertainty is extended to incorporate the game theoretic concepts required to deal with … these interactions. Implementation of the model shows that competition in R&D, in general, not only increases production and …
Persistent link: https://www.econbiz.de/10013115937
. Building on existing models of noisy Bayesian cognition, we formally propose that cognitive uncertainty generates these …This paper introduces a formal definition and an experimental measurement of the concept of cognitive uncertainty …: people's subjective uncertainty about what the optimal action is. This concept allows us to bring together and partially …
Persistent link: https://www.econbiz.de/10012858403
The real options framework has been used extensively to analyze the timing of investment under uncertainty. While …-inconsistent preferences. Two opposing forces determine investment timing: while evolving uncertainty induces entrepreneurs to defer investment …
Persistent link: https://www.econbiz.de/10013226097
We show how the value of a real option depends on corporate income taxes and the option's "debt capacity," defined as the amount of debt supported or displaced by the option. The value of the underlying asset must be an adjusted present value (APV). The risk-free rate of interest must be...
Persistent link: https://www.econbiz.de/10013104988
of cognition. Women are more risk averse than men. Over an initial range, women require no further compensation for the …
Persistent link: https://www.econbiz.de/10012757873
. The risky arm could potentially lead to a dead end and the safe arm introduces further competition to make firms keep …
Persistent link: https://www.econbiz.de/10013067107
host-country research and development effort in response to foreign competition, is one of three examining the impact of …
Persistent link: https://www.econbiz.de/10013224894
employment in the presence of foreign competition shocks. We exploit the fact that in a small open economy such as Canada the … by 0.19%. We use our estimates to trace the effects of foreign competition on the industry and firm-level sales and value …
Persistent link: https://www.econbiz.de/10013225950
industrial policies allocated to competitive sectors or that foster competition in a sector increase productivity growth. We … measure competition using the Lerner Index and include as industrial policies subsidies, tax holidays, loans, and tariffs …. Measures to foster competition include policies that are more dispersed across firms in a sector or measures that encourage …
Persistent link: https://www.econbiz.de/10013106960