scholarly journals Optimal product release time for a new high-tech startup firm under technical uncertainty

2021 ◽  
Vol 0 (0) ◽  
pp. 0
Author(s):  
Ming-hui Wang ◽  
Nan-jing Huang ◽  
Donal O'Regan
Keyword(s):  
Closed Form Solution ◽  
Form Solution ◽  
Release Time ◽  
Optimal Time ◽  
High Tech ◽  
Net Income ◽  
Time Model ◽  
Product Release ◽  
Similar Product ◽  
Startup Firms

<p style='text-indent:20px;'>Decision makers of new high-tech startup firms always want to choose an optimal time to launch their products which are under research and development (R&amp;D) to obtain the maximum net income of these firms. However, existing models fail to consider the optimal release time of products for these new high-tech startup firms. In this paper, the optimal time to launch the product of the R&amp;D project is assumed to be the first time when the product of the R&amp;D project is released to the market. Based on this assumption, we develop a continuous-time model to find the optimal time at which the startup firm launches its product of the R&amp;D project by considering the price of the similar product. Employing the methods of dynamic programming and variational inequalities, we also provide a closed form solution to our model. We also find that these high-tech startup firms prefer to delay their product release time when the price of the similar product is at a phase of rapid growth or the price has considerable uncertainty. Moreover, some numerical examples are provided to investigate the properties of our model.</p>

THE CHOICE OF FOREIGN PRODUCTION STRATEGY AND TIMING OF DECISION AMONG THREE COUNTRIES UNDER EXCHANGE RATE UNCERTAINTY

2004 ◽  
Vol 21 (04) ◽  
pp. 499-516 ◽  
Author(s):  
CHENG-RU WU ◽  
CHIN-TSAI LIN
Keyword(s):  
Process Model ◽  
Real Exchange Rates ◽  
Closed Form Solution ◽  
Batch Process ◽  
Form Solution ◽  
Production Model ◽  
Asia Pacific ◽  
Extended Model ◽  
Continuous Time Model ◽  
Time Model

This study considers the effects of two real exchange rates on strategies that govern the locations of production by firms that are entering two foreign countries. The batch process production model of Lin and Wu (Asia-Pacific Journal of Operational Research, 21, 2004, 35–52), which considers two locations of production, one in each of two countries is extended to develop a decision valuation model to choose the two optimal locations to produce a good — one in each country. This extended model applies the Real Options Analysis (ROA) to determine the value of locating production in three countries. Moreover, a closed-form solution to the Continuous-Time Model Optimization Problem is derived. The optimal entry trigger and expected arrival time of an exporter from country-0 to country-1 or 2 are calculated; a sensitivity analysis is performed, and some characteristic strategies of the operating method for the Cobb–Douglas batch process model among three countries are determined. A useful summary of insights is provided for global managers.

On a Closed-Form Solution of Prandtl's System of Equations

2013 ◽  
Vol 40 (2) ◽  
pp. 106-114
Author(s):  
J. Venetis ◽  
Aimilios (Preferred name Emilios) Sideridis
Keyword(s):  
Closed Form ◽  
Closed Form Solution ◽  
Form Solution ◽  
System Of Equations

Plane Wave Resonance in the Tire Air Cavity as a Vehicle Interior Noise Source

1995 ◽  
Vol 23 (1) ◽  
pp. 2-10 ◽  
Author(s):  
J. K. Thompson
Keyword(s):  
Closed Form Solution ◽  
Form Solution ◽  
Interior Noise ◽  
Cavity Resonance ◽  
Test Results ◽  
Vehicle Interior ◽  
Air Cavity ◽  
Vehicle Interior Noise ◽  
Wave Resonance ◽  
Resonance Frequencies

Abstract Vehicle interior noise is the result of numerous sources of excitation. One source involving tire pavement interaction is the tire air cavity resonance and the forcing it provides to the vehicle spindle: This paper applies fundamental principles combined with experimental verification to describe the tire cavity resonance. A closed form solution is developed to predict the resonance frequencies from geometric data. Tire test results are used to examine the accuracy of predictions of undeflected and deflected tire resonances. Errors in predicted and actual frequencies are shown to be less than 2%. The nature of the forcing this resonance as it applies to the vehicle spindle is also examined.

Capacity Analysis for Correlated Multi-Hop MIMO Channels under Colored Noise

2015 ◽  
Vol 1 ◽  
pp. 41
Author(s):  
Nguyen N. Tran ◽  
Ha X. Nguyen
Keyword(s):  
Computational Complexity ◽  
Mutual Information ◽  
Closed Form Solution ◽  
Optimal Solution ◽  
Form Solution ◽  
Maximization Problem ◽  
Capacity Analysis ◽  
Mimo Channels ◽  
Average Mutual Information ◽  
Channel Output

A capacity analysis for generally correlated wireless multi-hop multi-input multi-output (MIMO) channels is presented in this paper. The channel at each hop is spatially correlated, the source symbols are mutually correlated, and the additive Gaussian noises are colored. First, by invoking Karush-Kuhn-Tucker condition for the optimality of convex programming, we derive the optimal source symbol covariance for the maximum mutual information between the channel input and the channel output when having the full knowledge of channel at the transmitter. Secondly, we formulate the average mutual information maximization problem when having only the channel statistics at the transmitter. Since this problem is almost impossible to be solved analytically, the numerical interior-point-method is employed to obtain the optimal solution. Furthermore, to reduce the computational complexity, an asymptotic closed-form solution is derived by maximizing an upper bound of the objective function. Simulation results show that the average mutual information obtained by the asymptotic design is very closed to that obtained by the optimal design, while saving a huge computational complexity.

scholarly journals Geometric Average Asian Option Pricing with Paying Dividend Yield under Non-Extensive Statistical Mechanics for Time-Varying Model

Entropy ◽  
2018 ◽  
Vol 20 (11) ◽  
pp. 828 ◽  
Author(s):  
Jixia Wang ◽  
Yameng Zhang
Keyword(s):  
Statistical Mechanics ◽  
Option Pricing ◽  
Asset Price ◽  
Closed Form Solution ◽  
Real Data ◽  
Form Solution ◽  
Asian Option ◽  
Time Varying ◽  
Dividend Yield ◽  
Geometric Average

This paper is dedicated to the study of the geometric average Asian call option pricing under non-extensive statistical mechanics for a time-varying coefficient diffusion model. We employed the non-extensive Tsallis entropy distribution, which can describe the leptokurtosis and fat-tail characteristics of returns, to model the motion of the underlying asset price. Considering that economic variables change over time, we allowed the drift and diffusion terms in our model to be time-varying functions. We used the I t o ^ formula, Feynman–Kac formula, and P a d e ´ ansatz to obtain a closed-form solution of geometric average Asian option pricing with a paying dividend yield for a time-varying model. Moreover, the simulation study shows that the results obtained by our method fit the simulation data better than that of Zhao et al. From the analysis of real data, we identify the best value for q which can fit the real stock data, and the result shows that investors underestimate the risk using the Black–Scholes model compared to our model.

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