Dobbelaere, Sabien; Luttens, Roland Iwan; Peters, Bettina - Center for Operations Research and Econometrics … - 2009
We study a two-stage R&D project with an abandonment option. Two types of uncertaintyinfluence the decision to start R&D. Demand uncertainty is modelled as a lottery between aproportional increase and decrease in demand. Technical uncertainty is modelled as a lotterybetween a decrease and...