Investment in technological innovations: an option pricing approach
Article Abstract:
A strategic model has been developed to analyze the capabilities of firms to adapt with technological innovation, which outlines four potential migration strategies that will allow firms to adapt optimally with future and current innovations. One of the most notable strategies that was presented is the leapfrog method, which suggests that early innovations must be left out, and the next generation technology must be adopted. The model was also patterned after real market conditions and was adjusted for actual firm policies.
Publication Name: Journal of Financial Economics
Subject: Economics
ISSN: 0304-405X
Year: 1997
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'Time to build, option value and investment decisions': A comment
Article Abstract:
Majd and Pindyck's model of time to build is corrected for omission of an essential optimality condition.
Publication Name: Journal of Financial Economics
Subject: Economics
ISSN: 0304-405X
Year: 2000
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Decomposition of net final values: systemic value added and residual income
Article Abstract:
The author models net final value of an investment using a profintability index and a shadow project.
Publication Name: Bulletin of Economic Research
Subject: Economics
ISSN: 0307-3378
Year: 2003
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