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An ongoing debate sets capital budgeting against market timing. The primary difficulty in evaluating these theories is finding distinct exogenous proxies for investment opportunities and mispricing. We use demand shifts induced by demographics to address this problem, and hence, provide a more...
Persistent link: https://www.econbiz.de/10013152090
on-going investment costs until completion. Since time to completion is uncertain, the total investment costs will also … generalization of mixed strategies to continuous-time models in the form of abandonment intensities …
Persistent link: https://www.econbiz.de/10012760295
We study a competitive credit market in which lenders with partial knowledge of loan repayment use one of three decision criteria - maximization of expected utility, maximin, or minimax regret - to make lending decisions. Lenders allocate endowments between loans and a safe asset, while...
Persistent link: https://www.econbiz.de/10013233223
-related explanations. We do not rule out the possibility that creativity benefits from slack time. Instead, we introduce the idea that …The extant literature linking slack time to innovation focuses on how slack time facilitates creative activities such … as ideation, experimentation, and prototype development. We turn attention to how slack time may enable activities that …
Persistent link: https://www.econbiz.de/10013023339
Uncertainty about the timing of retirement is a major financial risk with implications for decision making and welfare over the life cycle. We estimate that the standard deviation of the difference between retirement expectations and actual retirement dates ranges from 4.28 to 6.92 years. We...
Persistent link: https://www.econbiz.de/10012983656
This paper considers the role of Rosenbergian uncertainty (i.e., economic uncertainties that arise after successful invention) in shaping appropriability for start-up innovators. Rather than assuming that the appropriability regime surrounding an innovation is exogenous, we focus on the...
Persistent link: https://www.econbiz.de/10012922996
women's creativity within the nonmarket household sector and outside the patent system. The analysis distinguishes between … improvements in consumer final goods, changes in designs, and other forms of technological creativity. The results indicate that …'s creativity in terms of a “gender difference” rather than a “gender gap” might yield useful analytical insights. A general …
Persistent link: https://www.econbiz.de/10012964884
In line with the fallacy of riskification of uncertainty by which decision makers believe that the effects of unpredictable phenomena can be captured accurately by probability distributions, organizational scholars commonly treat the organizational inefficiency in dealing with uncertainty...
Persistent link: https://www.econbiz.de/10012912518
When startup innovation involves a potentially disruptive technology - initially lagging in the predominant performance metric, but with a potentially favorable trajectory of improvement - incumbents may be wary of engaging in cooperative commercialization with the startup. While the prevailing...
Persistent link: https://www.econbiz.de/10013034526
It is well known that the funding status of state and local government defined benefit pension plans, as measured by the accounting methodology prescribed by the Governmental Accounting Standards Board (GASB), improves when the plans take on more investment risk. This paper documents several...
Persistent link: https://www.econbiz.de/10013118133