The Investment Decision Under Uncertainty

Author : Robert K. Dixit,Robert S. Pindyck
Publisher : Princeton University Press
Page : 484 pages
File Size : 53,7 Mb
Release : 2012-07-14
Category : Business & Economics
ISBN : 9781400830176

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Investment under Uncertainty by Robert K. Dixit,Robert S. Pindyck Pdf

How should firms decide whether and when to invest in new capital equipment, additions to their workforce, or the development of new products? Why have traditional economic models of investment failed to explain the behavior of investment spending in the United States and other countries? In this book, Avinash Dixit and Robert Pindyck provide the first detailed exposition of a new theoretical approach to the capital investment decisions of firms, stressing the irreversibility of most investment decisions, and the ongoing uncertainty of the economic environment in which these decisions are made. In so doing, they answer important questions about investment decisions and the behavior of investment spending. This new approach to investment recognizes the option value of waiting for better (but never complete) information. It exploits an analogy with the theory of options in financial markets, which permits a much richer dynamic framework than was possible with the traditional theory of investment. The authors present the new theory in a clear and systematic way, and consolidate, synthesize, and extend the various strands of research that have come out of the theory. Their book shows the importance of the theory for understanding investment behavior of firms; develops the implications of this theory for industry dynamics and for government policy concerning investment; and shows how the theory can be applied to specific industries and to a wide variety of business problems.

Author : Donald Eugene Farrar
Publisher : Unknown
Page : 112 pages
File Size : 42,9 Mb
Release : 1967
Category : Capital investments
ISBN : UOM:35128000122026

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The Investment Decision Under Uncertainty by Donald Eugene Farrar Pdf

Author : Haim Levy
Publisher : Springer Science & Business Media
Page : 439 pages
File Size : 51,8 Mb
Release : 2006-08-25
Category : Business & Economics
ISBN : 9780387293110

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Stochastic Dominance by Haim Levy Pdf

This book is devoted to investment decision-making under uncertainty. The book covers three basic approaches to this process: the stochastic dominance approach; the mean-variance approach; and the non-expected utility approach, focusing on prospect theory and its modified version, cumulative prospect theory. Each approach is discussed and compared. In addition, this volume examines cases in which stochastic dominance rules coincide with the mean-variance rule and considers how contradictions between these two approaches may occur.

Author : Eduardo S. Schwartz,Lenos Trigeorgis
Publisher : MIT Press
Page : 890 pages
File Size : 50,8 Mb
Release : 2004
Category : Business & Economics
ISBN : 0262693186

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Real Options and Investment Under Uncertainty by Eduardo S. Schwartz,Lenos Trigeorgis Pdf

The study of investment under uncertainty was stagnant for several decades until developments in real options revitalized the field. The topics covered in this book include the reasons behind the under-investment programme.

Author : Robert K. Dixit
Publisher : Unknown
Page : 483 pages
File Size : 54,9 Mb
Release : 2012
Category : Electronic
ISBN : OCLC:1027203892

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Investment Under Uncertainty by Robert K. Dixit Pdf

How should firms decide whether and when to invest in new capital equipment, additions to their workforce, or the development of new products? Why have traditional economic models of investment failed to explain the behavior of investment spending in the United States and other countries? In this book, Avinash Dixit and Robert Pindyck provide the first detailed exposition of a new theoretical approach to the capital investment decisions of firms, stressing the irreversibility of most investment decisions, and the ongoing uncertainty of the economic environment in which these decisions are mad.

Author : Antonio J. Conejo,Luis Baringo,S. Jalal Kazempour,Afzal S. Siddiqui
Publisher : Springer
Page : 389 pages
File Size : 45,5 Mb
Release : 2016-06-10
Category : Business & Economics
ISBN : 9783319295015

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Investment in Electricity Generation and Transmission by Antonio J. Conejo,Luis Baringo,S. Jalal Kazempour,Afzal S. Siddiqui Pdf

This book provides an in-depth analysis of investment problems pertaining to electric energy infrastructure, including both generation and transmission facilities. The analysis encompasses decision-making tools for expansion planning, reinforcement, and the selection and timing of investment options. In this regard, the book provides an up-to-date description of analytical tools to address challenging investment questions such as: How can we expand and/or reinforce our aging electricity transmission infrastructure? How can we expand the transmission network of a given region to integrate significant amounts of renewable generation? How can we expand generation facilities to achieve a low-carbon electricity production system? How can we expand the generation system while ensuring appropriate levels of flexibility to accommodate both demand-related and production-related uncertainties? How can we choose among alternative production facilities? What is the right time to invest in a given production or transmission facility? Written in a tutorial style and modular format, the book includes a wealth of illustrative examples to facilitate comprehension. It is intended for advanced undergraduate and graduate students in the fields of electric energy systems, operations research, management science, and economics. Practitioners in the electric energy sector will also benefit from the concepts and techniques presented here.

Author : ANDERSON ANDERSON WEBSTER
Publisher : Academic Press
Page : 314 pages
File Size : 41,5 Mb
Release : 2014-06-28
Category : Business & Economics
ISBN : 9781483294995

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Financial Decision Making Under Uncertainty by ANDERSON ANDERSON WEBSTER Pdf

Financial Dec Making under Uncertainty

Author : Ian Charles Runge
Publisher : Edward Elgar Publishing
Page : 232 pages
File Size : 40,9 Mb
Release : 2000
Category : Business & Economics
ISBN : STANFORD:36105025050472

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Capital and Uncertainty by Ian Charles Runge Pdf

Analyzes capital investment as a process in which an individual, entrepreneur, or organization comes to understand "value" before making a choice. Runge, an economist and mining engineer based in Australia, maintains that subjective value and uncertainty inform investment decision-making far more than the calculus of simple neoclassical choice suggests. His model of the capital investment process within a firm analyzes uncertainty and where it translates into risk. Runge sets out theories and tools for choosing between alternatives with differing risk and return profiles. His model provides a framework for decision-making that can lead to choices with lower overall risk, higher returns, and increased value. Annotation copyrighted by Book News Inc., Portland, OR

Author : Michael J. Barron
Publisher : Unknown
Page : 12 pages
File Size : 53,6 Mb
Release : 1971
Category : Electronic
ISBN : OCLC:249717030

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Investment Decisions Under Uncertainty by Michael J. Barron Pdf

Author : Haim Levy
Publisher : Springer
Page : 439 pages
File Size : 46,5 Mb
Release : 2008-11-01
Category : Business & Economics
ISBN : 0387510044

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Stochastic Dominance by Haim Levy Pdf

This book is devoted to investment decision-making under uncertainty. The book covers three basic approaches to this process: the stochastic dominance approach; the mean-variance approach; and the non-expected utility approach, focusing on prospect theory and its modified version, cumulative prospect theory. Each approach is discussed and compared. In addition, this volume examines cases in which stochastic dominance rules coincide with the mean-variance rule and considers how contradictions between these two approaches may occur.

Author : A Report for the World Bank by the Potsdam Institute for Climate Impact Research and Analytics.
Publisher : World Bank Publications
Page : 253 pages
File Size : 51,8 Mb
Release : 2013-06-19
Category : Climatic changes
ISBN : 9781464800559

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Turn Down the Heat by A Report for the World Bank by the Potsdam Institute for Climate Impact Research and Analytics. Pdf

This report focuses on the risks of climate change to development in Sub-Saharan Africa, South East Asia and South Asia. Building on the 2012 report, Turn Down the Heat: Why a 4°C Warmer World Must be Avoided, this new scientific analysis examines the likely impacts of present day, 2°C and 4°C warming on agricultural production, water resources, and coastal vulnerability. It finds many significant climate and development impacts are already being felt in some regions, and that as warming increases from present day (0.8°C) to 2°C and 4°C, multiple threats of increasing extreme heat waves, sea-level rise, more severe storms, droughts and floods are expected to have further severe negative implications for the poorest and most vulnerable. The report finds that agricultural yields will be affected across the three regions, with repercussions for food security, economic growth, and poverty reduction. In addition, urban areas have been identified as new clusters of vulnerability with urban dwellers, particularly the urban poor, facing significant vulnerability to climate change. In Sub-Saharan Africa, under 3°C global warming, savannas are projected to decrease from their current levels to approximately one-seventh of total land area and threaten pastoral livelihoods. Under 4°C warming, total hyper-arid and arid areas are projected to expand by 10 percent. In South East Asia, under 2°C warming, heat extremes that are virtually absent today would cover nearly 60-70 percent of total land area in northern-hemisphere summer, adversely impacting ecosystems. Under 4°C warming, rural populations would face mounting pressures from sea-level rise, increased tropical cyclone intensity, storm surges, saltwater intrusions, and loss of marine ecosystem services. In South Asia, the potential sudden onset of disturbances to the monsoon system and rising peak temperatures would put water and food resources at severe risk. Well before 2°C warming occurs, substantial reductions in the frequency of low snow years is projected to cause substantial reductions in dry season flow, threatening agriculture. Many of the worst climate impacts could still be avoided by holding warming below 2°C, but the window for action is closing rapidly. Urgent action is also needed to build resilience to a rapidly warming world that will pose significant risks to agriculture, water resources, coastal infrastructure, and human health.

Author : Charles Yoe
Publisher : CRC Press
Page : 576 pages
File Size : 43,9 Mb
Release : 2016-04-19
Category : Technology & Engineering
ISBN : 9781439857502

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Principles of Risk Analysis by Charles Yoe Pdf

In every decision context there are things we know and things we do not know. Risk analysis uses science and the best available evidence to assess what we know-and it is intentional in the way it addresses the importance of the things we don't know. Principles of Risk Analysis: Decision Making Under Uncertainty lays out the tasks of risk analysis i

Author : L. M. Rose
Publisher : North-Holland
Page : 504 pages
File Size : 43,7 Mb
Release : 1976
Category : Business & Economics
ISBN : WISC:89034012534

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Engineering Investment Decisions by L. M. Rose Pdf

Author : J.H.H Thijssen
Publisher : Springer Science & Business Media
Page : 255 pages
File Size : 43,9 Mb
Release : 2006-04-11
Category : Business & Economics
ISBN : 9781402079443

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Investment under Uncertainty, Coalition Spillovers and Market Evolution in a Game Theoretic Perspective by J.H.H Thijssen Pdf

Two crucial aspects of economic reality are uncertainty and dynamics. In this book, new models and techniques are developed to analyse economic dynamics in an uncertain environment. In the first part, investment decisions of firms are analysed in a framework where imperfect information regarding the investment's profitability is obtained randomly over time. In the second part, a new class of cooperative games, spillover games, is developed and applied to a particular investment problem under uncertainty: mergers. In the third part, the effect of bounded rationality on market evolution is analysed for oligopolistic competition and incomplete financial markets.

Author : Richard Friberg
Publisher : MIT Press
Page : 395 pages
File Size : 51,9 Mb
Release : 2015-11-13
Category : Business & Economics
ISBN : 9780262528191

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Managing Risk and Uncertainty by Richard Friberg Pdf

A comprehensive framework for assessing strategies for managing risk and uncertainty, integrating theory and practice and synthesizing insights from many fields. This book offers a framework for making decisions under risk and uncertainty. Synthesizing research from economics, finance, decision theory, management, and other fields, the book provides a set of tools and a way of thinking that determines the relative merits of different strategies. It takes as its premise that we make better decisions if we use the whole toolkit of economics and related fields to inform our decision making. The text explores the distinction between risk and uncertainty and covers standard models of decision making under risk as well as more recent work on decision making under uncertainty, with a particular focus on strategic interaction. It also examines the implications of incomplete markets for managing under uncertainty. It presents four core strategies: a benchmark strategy (proceeding as if risk and uncertainty were low), a financial hedging strategy (valuable if there is much risk), an operational hedging strategy (valuable for conditions of much uncertainty), and a flexible strategy (valuable if there is much risk and/or uncertainty). The book then examines various aspects of these strategies in greater depth, building on empirical work in several different fields. Topics include price-setting, real options and Monte Carlo techniques, organizational structure, and behavioral biases. Many chapters include exercises and appendixes with additional material. The book can be used in graduate or advanced undergraduate courses in risk management, as a guide for researchers, or as a reference for management practitioners.