Author: Vivek GhosalPublisher:
ISBN:
Category : Competition
Languages : en
Pages : 68
Book Description
The Impact of Uncertainty and Sunk Costs on Firm Dynamics and Industry Structure
Author: Vivek GhosalPublisher:
ISBN:
Category : Competition
Languages : en
Pages : 68
Book Description
Impact of Uncertainty and Sunk Costs on Firm Survival and Industry Dynamics
Author: Vivek GhosalInvestment under Uncertainty
Author: Robert K. DixitPublisher: Princeton University Press
ISBN: 1400830176
Category : Business & Economics
Languages : en
Pages : 484
Book Description
How should firms decide whether and when to invest in new capital equipment, additions to their workforce, or the development of new products? Why have traditional economic models of investment failed to explain the behavior of investment spending in the United States and other countries? In this book, Avinash Dixit and Robert Pindyck provide the first detailed exposition of a new theoretical approach to the capital investment decisions of firms, stressing the irreversibility of most investment decisions, and the ongoing uncertainty of the economic environment in which these decisions are made. In so doing, they answer important questions about investment decisions and the behavior of investment spending. This new approach to investment recognizes the option value of waiting for better (but never complete) information. It exploits an analogy with the theory of options in financial markets, which permits a much richer dynamic framework than was possible with the traditional theory of investment. The authors present the new theory in a clear and systematic way, and consolidate, synthesize, and extend the various strands of research that have come out of the theory. Their book shows the importance of the theory for understanding investment behavior of firms; develops the implications of this theory for industry dynamics and for government policy concerning investment; and shows how the theory can be applied to specific industries and to a wide variety of business problems.
Bertrand Competition Without Completely Certain Production
Author: Sheldon KimmelPublisher:
ISBN:
Category : Competition
Languages : en
Pages : 42
Book Description
Does Opportunism Explain Markups in Laser Printer Toner and Memory?
Author: Eric EmchPublisher:
ISBN:
Category : Aftermarkets
Languages : en
Pages : 84
Book Description
Endogenous Spillovers, Strategic Blocking, and the Design of Contracts in Collaborative R & D
Author: Suzanne E. MajewskiPublisher:
ISBN:
Category : Joint ventures
Languages : en
Pages : 58
Book Description
The Economics of Imperfect Markets
Author: Giorgio CalcagniniPublisher: Springer Science & Business Media
ISBN: 3790821314
Category : Business & Economics
Languages : en
Pages : 237
Book Description
This book is a collection of eleven papers concerned with the effects of market imperfections on the decision-making of economic agents and on economic policies that try to correct the inefficient market outcomes due to those imperfections. As a consequence, real and financial imperfections are related : economic decisions are simultaneously affected by imperfections present both in real and financial markets. Notwithstanding the obvious fact that market interdependence is not novel, scholar interests are typically concentrated on the specific relationship among economic decisions originating from particular imperfections. This explains why, in the case of perfect financial markets, we can speak of "the" us.
Federal Antitrust Developments in the United States: Annual Reports to the Competition Committee of the Directorate For Financial and Enterprise Affairs of the Organisation for Economic Co-operation and Development 2002
Author: Publisher: DIANE Publishing
ISBN: 142895323X
Category :
Languages : en
Pages : 26
Book Description
Uncertainty and the Dynamics of R&D
Author: Nick BloomPublisher:
ISBN:
Category : Corporations
Languages : en
Pages : 32
Book Description
Uncertainty varies strongly over time, rising by 50% to 100% in recessions and by up to 200% after major economic and political shocks. This paper shows that higher uncertainty reduces the responsiveness of R & D to changes in business conditions - a "caution-effect"--Making it more persistent over time. Thus, uncertainty will play a critical role in shaping the dynamics of R & D through the business cycle, and its response to technology policy. I also show that if firms are increasing their level of R & D then the effect of uncertainty will be negative, while if firms are reducing R & D then the effect of uncertainty will be positive.
Irreversibility, Uncertainty, and Investment
Author: Robert S. PindyckPublisher: World Bank Publications
ISBN:
Category : Capital investments
Languages : en
Pages : 58
Book Description
Irreversible investment is especially sensitive to such risk factors as volatile exchange rates and uncertainty about tariff structures and future cash flows. If the goal of macroeconomic policy is to stimulate investment, stability and credibility may be more important than tax incentives or interest rates.