scholarly journals Capacity Choice under Uncertainty with Product Differentiation

2012 ◽  
Author(s):  
Christiaan Behrens ◽  
Mark Lijesen
Keyword(s):  
Product Differentiation ◽  
Choice Under Uncertainty ◽  
Capacity Choice

scholarly journals Investment Timing and Capacity Choice under Uncertainty

2014 ◽  
Vol 2014 ◽  
pp. 1-9
Author(s):  
Xiumei Lv ◽  
Shiqin Xu ◽  
Xiaoling Tang
Keyword(s):  
Real Option ◽  
Investment Decisions ◽  
Value Functions ◽  
Market Demand ◽  
Strategic Investment ◽  
Investment Timing ◽  
Choice Under Uncertainty ◽  
Capacity Choice ◽  
The Face ◽  
Stochastic Market

This paper examines strategic investment between two firms that compete not only for investment timing but also for capacity under stochastic market demand. The value functions of real option for the follower, the dominant leader, and the preemptive leader are derived and their investment decisions are investigated. It finds that both firms will delay investment and the delayed margin of the follower will surpass that of the leader under greater uncertainty. Furthermore, both firms will provide more outputs in the face of increasing uncertainty and the growth rate of the follower’s capacity will exceed that of the leader’s. In addition, this paper finds that the follower will end up with a larger capacity than the leader.

Evidence for a "risky drift" in choice under uncertainty

1990 ◽  
Author(s):  
David A. Harrison ◽  
David Holtgrave ◽  
J. Carlos Rivero
Keyword(s):  
Choice Under Uncertainty

Modeling Choice Under Uncertainty in Military Systems Analysis

1991 ◽  
Author(s):  
P. E. Girard ◽  
J. W. Ulvilla ◽  
M. F. O'Connor
Keyword(s):  
Systems Analysis ◽  
Choice Under Uncertainty ◽  
Military Systems
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