Disruptive innovations often formulate new market regimes and create incentives to abandon existing, less attractive ones. However, this decision depends not only on market forces, such as economic and technological uncertainty, but also on attitudes towards risk. Although greater risk aversion...

When do short lead times warrant a cost premium? Decision makers generally agree that short lead times enhance competitiveness, but have struggled to quantify their benefits. Blackburn (2012) argued that the marginal value of time is low when demand is predictable and salvage values are high. De...

Models of investment under uncertainty mostly concern the firm's stochastic environment as exogenously given and subject to constant characteristics. We consider a firm that can sequentially invest to alter the growth rate of a project through a revenue-enhancing pre-investment activity prior to...