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Capital budgeting frequently involves multiple stages at which firms can continue or abandon ongoing projects. In this paper, we study a project requiring two stages of investment. Failure to fund Stage 1 of the investment precludes investment in Stage 2, whereas failure to fund Stage 2 results...
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We consider a supply chain with one manufacturer who assembles an end-product consisting of two components (A and B), where each component is purchased from multiple outside suppliers. The manufacturer's decision as to the contract to offer each supplier is complicated by two factors: (1) each...
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