Rescaling-contraction with a lower cost technology when revenue declines

DOI10.1016/J.EJOR.2019.02.037MaRDI QIDQ1737495zbMATH OpenOpenAlexWikidataFDO

Authors Roger Adkins, Dean Paxson

Publication date 23 April 2019

Published in European Journal of Operational Research (Search for Journal in Brave)

Full work available at URL https://www.research.manchester.ac.uk/portal/en/publications/rescalingcontraction-with-a-lower-cost-technology-when-revenue-declines(a3c166a6-b11c-41cd-80b3-0b9b947da6c6).html

zbMATH Keywords

investment under uncertaintyOR in natural resourcesrescaling-contractiontechnology switching options

Mathematics Subject Classification ID

Environmental economics (natural resource models, harvesting, pollution, etc.) (91B76)

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Cites work

• Capacity choice under uncertainty in a duopoly with endogenous exit
• Choosing among alternative discrete investment projects under uncertainty
• How to escape a declining market: capacity investment or exit?
• Hysteresis due to irreversible exit: addressing the option to mothball
• Irreversible investment in alternative projects
• Managing risks from climate impacted hazards -- the value of investment flexibility under uncertainty
• Optimal regime switching under risk aversion and uncertainty
• Repeated real options: optimal investment behaviour and a good rule of thumb
• Replacement decisions with multiple stochastic values and depreciation
• Stepwise investment and capacity sizing under uncertainty
• Switching from oil to gas production in a depleting field
• Technology choice under several uncertainty sources
• Uncertainty and stepwise investment
• When and how much to invest? Investment and capacity choice under product life cycle uncertainty
• When is it better to wait for a new version? Optimal replacement of an emerging technology under uncertainty

Cited in

(3)

• Capacity investment choices under cost heterogeneity and output flexibility in oligopoly
• A review of the operations literature on real options in energy
• Switching from oil to gas production in a depleting field

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