Investing in times of uncertainty

Original price was: $110.00.Current price is: $65.99.

Price: $110.00 - $65.99
(as of Aug 18, 2024 17:53:20 UTC – Details)


How should firms decide whether and when to invest in new capital equipment, workforce expansion, or new product development? Why have traditional economic models of investment failed to explain investment spending behavior 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 firms' capital investment decisions, emphasizing the irreversibility of most investment decisions and the continuing uncertainty of the economic environment in which those decisions are made. In doing so, they answer important questions about investment decisions and investment spending behavior.

This new approach to investment recognizes the value of the option to wait for better (but never complete) information. It exploits an analogy with options theory in financial markets, which allows for a much richer dynamic framework than was possible with traditional investment theory. The authors present the new theory in a clear and systematic manner, and consolidate, synthesize, and extend the various lines of research that have emerged from the theory. Their book shows the importance of the theory for understanding firm investment behavior; develops the implications of this theory for industrial dynamics and for government investment policy; and shows how the theory can be applied to specific industries and to a wide variety of business problems.

Publisher: Princeton University Press; First edition (January 10, 1994)
Language ‏ : ‎ English
Hardcover ‏ : ‎ 476 pages
ISBN-10 ‏ : ‎ 0691034109
ISBN-13 ‏ : ‎ 978-0691034102
Item Weight: 2.31 lbs
Dimensions: 6.5 x 1.25 x 9.5 inches

Reviews

There are no reviews yet.

Be the first to review “Investing in times of uncertainty”

Your email address will not be published. Required fields are marked *