How should manufacturers and retailers optimize the sets of products they offer? Increasing product proliferation forces firms to solve these complex optimization problems ever more frequently. While the existing literature has made some headway in solving these problems, the three essays in...

This book extends the theory of real options. Where previous contributions mainly consider the timing of investment, this book also determines the optimal capacity size. We develop and analyze several theoretical investment models of the firm. The first three studies consider firms that act in a...