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The Other Side of Limited Liability: Predatory Behavior and Investment Timing
Bayer, Christian - EconWPA - 2004
duopoly with aggregate demand uncertainty. We find that limited liability and investment irreversibility is likely to produce … obligations in adverse states. However, market conditions themselves become endogenous in a duopoly since the quantity decisions … consequently monopolize the market. Therefore, the model of this paper explains predatory behavior in a duopoly without invoking …
Persistent link: https://www.econbiz.de/10005134505
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The Choice of Institutions: The Role of Risk and Risk-Aversion
Weinhold, Diana; Zak, Paul J. - EconWPA - 2005
Institutions can affect individual behavior both via their efficiency impact and via their risk reducing mechanisms … simultaneously extant institutions. This paper presents a simple model of institutional choice in a labor market when there is a risk …/reward trade-off, and tests the predictions of the theory. Using a novel empirical approach that adapts an ARCH-in-mean to cross …
Persistent link: https://www.econbiz.de/10005118909
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Gains and losses: the same or different choices? A “non-ideal” economics approach.
Harin, Alexander - EconWPA - 2005
infringements. It gives promises for both solving fundamental problems of economic theory and creation of new directions and fields …
Persistent link: https://www.econbiz.de/10005124942
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Wertschaffendes Umweltmanagement. Keine Nachhaltigkeit ohne ökonomischen Erfolg. Kein ökonomischer Erfolg ohne Nachhaltigkeit
Figge, Frank - EconWPA - 2004
Die Studie „Wertschaffendes Umweltmanagement“ betrachtet den Zusammenhang zwischen Umweltaspekten und Unternehmenswert. Hierbei bezieht sie erstmals zwei unterschiedliche, sich ergänzende Bewertungsverfahren ein: Sie nimmt erstens das Konzept des Environmental Shareholder Value auf und...
Persistent link: https://www.econbiz.de/10005407755
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Barriers and Optimal Investment
Saphores, Jean-Daniel - EconWPA - 2004
This paper analyzes the impact of different types of barriers on the decision to invest using a simple framework based on stochastic discount factors. Our intuitive approach proposes an alternative to the real options methodology that does not rely on the “smooth-pasting condition.” An...
Persistent link: https://www.econbiz.de/10005408247
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Practical guide to real options in discrete time II
Boyarchenko, Svetlana; Levendorskii, Sergei - EconWPA - 2005
This paper is an extended version of the paper 'Practical Guide to Real Options in Discrete Time' (http://econwpa.wustl.edu:80/eps/fin/papers/0405/0405016.pdf), where a general, computationally simple approach to real options in discrete time was suggested. We explicitly formulate conditions of...
Persistent link: https://www.econbiz.de/10005413111
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Valuing Joint Ventures Using Real Options
Pape, Ulrich; Schmidt-Tank, Stephan - EconWPA - 2005
As the valuation of strategic measures becomes increasingly important, relatively few articles have discussed the valuation methods pertained for joint ventures. This paper shows that real options contribute to a better valuation of joint venture projects through superior reflection of the value...
Persistent link: https://www.econbiz.de/10005077010
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Buridan's Ass and a Menu of Options.
Boyarchenko, Svetlana - EconWPA - 2005
The goal of the paper is to study how a menu of options affects decisions of a rational agent facing uncertainty over future payoff streams. Using the real options approach, we demonstrate that multiple options not only increase the barrier which the underlying stochastic variable has to reach...
Persistent link: https://www.econbiz.de/10005550882
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Optimal two stage committee voting rules
Ayres, Ian; Rowat, Colin; Zakariya, Nasser - EconWPA - 2004
We study option management by committee. Analysis is illustrated by tenure decisions. Our innovations are two-fold: we treat the committee's problem as one of social choice, not of information aggregation; and we endogenise the outside option: rejecting a candidate at either the probationary or...
Persistent link: https://www.econbiz.de/10005118661
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Flexibility and Technology Choice in Gas Fired Power Plant Investments
Näsäkkälä, Erkka; Fleten, Stein- Erik - EconWPA - 2004
The value of a gas fired power depends on the spark spread, defined as the difference between the price of electricity and the cost of gas used for the generation of electricity. We model the spark spread using a two-factor model, allowing mean-reversion in short-term variations and uncertainty...
Persistent link: https://www.econbiz.de/10005118874