A MODEL OF ENTRY-EXIT DECISIONS AND CAPACITY CHOICE UNDER DEMAND UNCERTAINTY

Article, Preprint OPEN
Isik, Murat; Coble, Keith H.; Hudson, Darren; House, Lisa O.;
(2002)
  • Subject: agribusiness decision-making, demand uncertainty, entry-exit decisions, net present value, real options, remote sensing, Demand and Price Analysis, | Agribusiness decision-making, Demand uncertainty, Entry-exit decisions, Real options, Remote sensing, Demand and Price Analysis, Risk and Uncertainty, E22, D81, Q 16,

Many investment decisions of agribusiness firms, such as when to invest in an emerging market or whether to expand the capacity of the firm, involve irreversible investment and uncertainty about demand, cost or competition. This paper uses an option-value model to exami... View more
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