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The Dixit entry/exit real option model was applied to the entry/exit decisions of New York dairy farmers. For the cost structure of a 500-cow farm the entry milk price is $17.52 per hundredweight (cwt.) and the exit milk price is $10.84. For the 50-cow farm cost structure the entry price is...
Persistent link: https://www.econbiz.de/10005804905
In this study, we experimentally analyze the investment behavior of smallholder farmers in Uganda. We consider a … options approach and the classical investment theory can predict farmers’ investment behaviors. We also examine differences in … the investment behavior with respect to the presence of a price floor, which is often used to stimulate investments …
Persistent link: https://www.econbiz.de/10010880186
biogas production. The model implemented is based on a real option approach that includes investment irreversibility and …
Persistent link: https://www.econbiz.de/10008465930
Innovation and new technology adoption represent two central elements for the business and industry development process in agriculture. One of the most relevant innovations in dairy farms is the robotisation of the milking process through the adoption of Automatic Milking Systems (AMS). The...
Persistent link: https://www.econbiz.de/10010909199
investment of endogenous size. Using a real option approach in continuous time, we show that profit sharing does not affect a … total investment. We also evaluate the reduction in the firm s value due to profit sharing, linking this reduction to the …
Persistent link: https://www.econbiz.de/10011509471
Persistent link: https://www.econbiz.de/10011620012
Persistent link: https://www.econbiz.de/10010463795
In this study, we experimentally analyze the investment behavior of smallholder farmers in Uganda. We consider a … options approach and the classical investment theory can predict farmers’ investment behaviors. We also examine differences in … the investment behavior with respect to the presence of a price floor, which is often used to stimulate investments …
Persistent link: https://www.econbiz.de/10010235112
Persistent link: https://www.econbiz.de/10011457530
Persistent link: https://www.econbiz.de/10011503779