This paper examines the effect of irreversibility on investment under mean reversion. We develop a continuous-time model wherein a risk-neutral firm is endowed with a perpetual option to invest in a project at any time by incurring a fixed investment cost at that instant. The project, once...

The paper reports on a research study of knowledge acquisition by Chinese firms involved in collaborative ventures with foreign enterprises. The study uses 152 Chinese businesses and examines how absorptive capacity (ACAP), as conceptualized by Cohen and Leventahl (1990) and modified by Zahra...

We analyze a model in which agents’ decisions to enter or exit investments are influenced from their individual and external parties’ transaction histories. Actual investment outcomes are unknown to all participants until the end of decision periods, but outcomes do change depending on the...

In this paper, we propose an iterative approach to jointly solve the problems of tactical safety stock placement and tactical production planning. These problems have traditionally been solved in isolation, even though both problems operate in the same decision making space and the outputs of...