EFFECT OF REVENUE INSURANCE ON ENTRY AND EXIT DECISIONS IN TABLE GRAPE PRODUCTION: A REAL OPTION APPROACH

Preprint OPEN
Seo, Sangtaek; Salin, Victoria; Mitchell, Paul D.; Leatham, David J.;
(2004)
  • Subject: Risk and Uncertainty,

This study determines the entry and exit thresholds of table grape farming with irreversible investment under uncertainty. Real option approach is adopted to consider the investment and management flexibility. Also revenue insurance is introduced to consider the effect ... View more
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