Deprecated: $wgMWOAuthSharedUserIDs=false is deprecated, set $wgMWOAuthSharedUserIDs=true, $wgMWOAuthSharedUserSource='local' instead [Called from MediaWiki\HookContainer\HookContainer::run in /var/www/html/w/includes/HookContainer/HookContainer.php at line 135] in /var/www/html/w/includes/Debug/MWDebug.php on line 372
Investment and the Valuation of Firms When There is an Option to Shut Down - MaRDI portal

Investment and the Valuation of Firms When There is an Option to Shut Down

From MaRDI portal
Publication:3696804

DOI10.2307/2526587zbMath0576.90008OpenAlexW1497179728MaRDI QIDQ3696804

Robert L. McDonald, Daniel R. Siegel

Publication date: 1985

Published in: International Economic Review (Search for Journal in Brave)

Full work available at URL: http://www.kellogg.northwestern.edu/research/math/papers/529.pdf




Related Items (72)

A model for investment decisions with switching costs.The short-run shutdown decision when output price and initial wealth are randomAUCTIONS, REAL OPTIONS VALUATION, AND PRIVATIZATIONExit option for a class of profit functionsA generalized complementarity approach to solving real option problemsIrreversible investment with uncertainty and scale economiesThe timing of stabilizationsOptimal switching decisions under stochastic volatility with fast mean reversionHow to escape a declining market: capacity investment or exit?Accelerated depreciation, default risk and investment decisionsAn optimal multiple stopping approach to infrastructure investment decisionsThe effects of abandonment options on investment timing and profit sharing of FDIOption pricing methods: an overviewEuropean option based R\&D investment decision making under uncertaintiesOptimal investment with two-factor uncertaintyDynamic investment strategies with demand-side and cost-side risksExit strategies and price uncertainty: A Greenian approachEfficient algorithms of pathwise dynamic programming for decision optimization in mining operationsOptimal Multiple Stopping with Negative Discount Rate and Random Refraction Times under Lévy ModelsA model of sequential investmentMature offshore oil field development: solving a real options problem using stochastic dual dynamic integer programmingCapacity switching options under rivalry and uncertaintyAN ANALYTIC RECURSIVE METHOD FOR OPTIMAL MULTIPLE STOPPING: CANADIZATION AND PHASE-TYPE FITTINGPricing American-style securities using simulationOn buybacks, dilutions, dividends, and the pricing of stock‐based claimsOptimal entry to an irreversible investment plan with non convex costsReal R\&D options under fuzzy uncertainty in market share and revealed informationModel-free analysis of real option exercise probability and timingIrreversible exit decisions under mean-reverting uncertaintyHIGH UNCERTAINTY FINANCINGModeling investment behavior under price cap regulationA review of the operations literature on real options in energyOptimal investment under operational flexibility, risk aversion, and uncertaintyFinancially adaptive clinical trials via option pricing analysisA network of options: evaluating complex interdependent decisions under uncertaintyOption pricing under joint dynamics of interest rates, dividends, and stock pricesUnnamed ItemValuation of expansion flexibility in flexible manufacturing system investments using sequential exchange optionsTHE EFFECTS OF ABANDONMENT OPTIONS ON INVESTMENT TIMING AND INTENSITYAn R\&D investment game under uncertainty in real option analysisCapital gains and asset switchingValuation of R\&D compound option using Markov chain approachThe impact of delaying an investment decision on R\&D projects in real option gameModelling and Computation for the Valuation of Two-Period $R\&D$ Projects by Option GamesFixed versus flexible production systems: A real options analysisDeterminants of the foreign equity share of international joint venturesStrategic technology switching under risk aversion and uncertaintyOptimal management of pumped hydroelectric production with state constrained optimal controlCapacity choice under uncertainty in a duopoly with endogenous exitOptimal regime switching under risk aversion and uncertaintyInvestments in flexible production capacityThe effect of mean reversion on entry and exit decisions under uncertaintyA fuzzy approach for R\&D compound option valuationEquilibrium with new investment opportunitiesStructural estimation of real options modelsStochastic Models for Oil Prices and the Pricing of Futures on OilCapacity investment choices under cost heterogeneity and output flexibility in oligopolyRETRACTED ARTICLE: A generalized real option pricing method of R&D investments: jump diffusion and external competitionDeferred taxation under default riskThe optimal stopping problem revisitedEvaluating leases with complex operating optionsFinite maturity caps and floors on continuous flowsValuation of R\&D sequential exchange options using Monte Carlo approachMarket entry, phased rollout or abandonment? A real option approachOptimal exit and valuation under demand uncertainty: a real options approachInvestment under uncertainty with financial constraintsKalman filter approach to real options with active learningA binomial contingent claims model for valuing risky venturesValuing flexibility: An impulse control frameworkValuing agricultural firms. An examination of the contingent-claims approach to pricing real assetsDuopolistic competition under risk aversion and uncertaintyOPTIMAL INVESTMENT IN INTERRELATED PROJECTS




This page was built for publication: Investment and the Valuation of Firms When There is an Option to Shut Down