Product Innovation and Optimal Capital Investment under Uncertainty
碩士 === 國立高雄大學 === 統計學研究所 === 94 === This thesis analyzes the optimal investment strategy of a competitive firm in an uncertain environment. In contrast to the previous contribution, the current study takes into account the impacts on price of R&D investment in the framework of optimal investment...
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| Format: | Others |
| Language: | en_US |
| Published: |
2006
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| Online Access: | http://ndltd.ncl.edu.tw/handle/46794450661888469205 |
| Summary: | 碩士 === 國立高雄大學 === 統計學研究所 === 94 === This thesis analyzes the optimal investment strategy of a competitive firm in an uncertain environment. In contrast to the previous contribution, the current study takes into account the impacts on price of R&D investment in the framework of optimal investment under uncertainty. This formulation captures an important observation of the business world, that is, firms constantly face trade-off in R&D activities which can raise the firm value by delivering new technology. We characterize the firm's optimal investment policy explicitly and derive solutions for firm value in some different situations by considering discrete-time and continuous-time models. We show that demand uncertainty has a positive effect on the optimal investments and the present value of a firm.
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