How should firms decide whether and when to invest in new capital
equipment, additions to their workforce, or the development of new
products? Why have traditional economic models of investment failed to
explain the behavior of investment spending 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
the capital investment decisions of firms, stressing the
irreversibility of most investment decisions, and the ongoing
uncertainty of the economic environment in which these decisions are
made. In so doing, they answer important questions about investment
decisions and the behavior of investment spending. This new approach
to investment recognizes the option value of waiting for better (but
never complete) information. It exploits an analogy with the theory of
options in financial markets, which permits a much richer dynamic
framework than was possible with the traditional theory of investment.
The authors present the new theory in a clear and systematic way, and
consolidate, synthesize, and extend the various strands of research
that have come out of the theory. Their book shows the importance of
the theory for understanding investment behavior of firms; develops
the implications of this theory for industry dynamics and for
government policy concerning investment; and shows how the theory can
be applied to specific industries and to a wide variety of business
problems.
Les mer
Produktdetaljer
ISBN
9781400830176
Publisert
2013
Utgiver
Vendor
Princeton University Press
Språk
Product language
Engelsk
Format
Product format
Digital bok
Forfatter