Investment in salvage equipment
Article Abstract:
A model describing salvage capacity as part of traditional capital budgeting is developed. The model assumes that manufacturers with excess products can mark them down up to selling point, dispose them or salvage to recover raw materials and components. Findings indicate that managers often make poor decisions concerning investment in such equipment because they fail to consider the effects of its production run size and selling price.
Publication Name: Managerial & Decision Economics
Subject: Economics
ISSN: 0143-6570
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
Do some firms rely on the owners' preferences instead of sunk investments to guarantee performance?
Article Abstract:
The Klein and Lefler approach to owner preference and sunk investmentss to predict business performance is discussed. The argument that customers' preference based on the previous functional utility of a business entity and not the amount of sunk investments can guarantee future profitability of the firm, proved to be a reliable premise. Sunk investments are found to provide limited guarantees of performance.
Publication Name: Managerial & Decision Economics
Subject: Economics
ISSN: 0143-6570
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
Behavioral uncertainty and investments in cooperative relationships
Article Abstract:
A cooperative relationship is examined between two economic agents, in which one agent can make investments in the relationship to reduce the probability that the other agent defects. It is shown that the relationship between investment and probability of defection depends on the type of uncertainty considered and the effects of parameter changes are analyzed on the optimal level of investment.
Publication Name: Managerial & Decision Economics
Subject: Economics
ISSN: 0143-6570
Year: 2004
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: On income transfers and equivalence scales. A first survey on the labour market effects of Cnossen's tax proposal
- Abstracts: On growth in disequilibrium. Monotone price movements: a non-Euclidean approach
- Abstracts: Renegotiation and the efficiency of investments. Contract damages and cooperative investments. Sequential-equilibrium investment by regulated firms
- Abstracts: Investment under uncertainty: a review essay. Public investment, private investment, and inflation. Investments in flexible production capacity
- Abstracts: Comment on H. Genberg and A. Swoboda, "Saving, investment and the current account." Comment on J.I. Bernstein, "Information Spillovers, Margins, Scale and Scope: with an Application to Canadian Life Insurance." (response to article by Jeffrey I. Bernstein in this issue, p.S95)