Expandability, reversibility, and optimal capacity choice
Our rough guess is there are 7,000 words in this book.
At a pace averaging 250 words per minute, this book will take 0 hours and 28 minutes to read. With a half hour per day, this will take 1 days to read.
How long will it take you?
This book will take an estimated to read at a reading speed averaging words per minute. With 30 minutes per day, this will take to read.
Enter your reading speedYou can take one of our WPM reading speed tests to find your reading speed.
Create a free account to track your reading progress, build your reading list, and set reading goals.
Author
Contributions
- Pindyck, Robert S. - Contributor
- National Bureau of Economic Research. - Contributor
Publication
1998 - National Bureau of Economic Research, Cambridge, MA, Massachusetts
Language
English
Word Count
7,000 words, Guess
Page Count
28 pages
Identifiers
- OCLC Control Number38528635
- Open LibraryOL22403991M
Classifications
- LCCHB1 .W654 no. 6375
Description
We develop continuous-time models of capacity choice when demand fluctuates stochastically, and the firm's opportunities to expand or contract are limited. Specifically, we consider costs of investing or disinvesting that vary with time, or with the amount of capacity already installed. The firm's limited opportunities to expand or contract create call and put options on incremental units of capital; we show how the values of these options affect the firm's investment decisions.
Subjects
Topics
Links
Reader Reviews
No reviews yet for this book.
Be the first to share your thoughts!