Weeds, Helen (1999) 'Reverse Hysteresis': R&D Investment with Stochastic Innovation. Working Paper. The Warwick Economics Research Paper Series (TWERPS) 578.
Weeds, Helen (1999) 'Reverse Hysteresis': R&D Investment with Stochastic Innovation. Working Paper. The Warwick Economics Research Paper Series (TWERPS) 578.
Weeds, Helen (1999) 'Reverse Hysteresis': R&D Investment with Stochastic Innovation. Working Paper. The Warwick Economics Research Paper Series (TWERPS) 578.
Abstract
We consider optimal investment behavior for a firm facing both technological and economic uncertainty, in the context of a research project with unpredictable outcomes. The optimal investment strategy, in the form of a pair of trigger points for investment and abandonment, is derived. As in Dixit (1989), the investment trigger exceeds the Marshallian investment point.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Uncontrolled Keywords: | Research And Development ; Investments ; Behaviour |
| Subjects: | H Social Sciences > HB Economic Theory |
| Divisions: | Faculty of Social Sciences > Economics, Department of |
| Depositing User: | Jim Jamieson |
| Date Deposited: | 18 Jul 2012 00:02 |
| Last Modified: | 18 Jul 2012 00:02 |
| URI: | http://repository.essex.ac.uk/id/eprint/3054 |