Technology competition and optimal investment timing: A real options perspective

• Main Authors: KAUFFMAN, Robert J., LI, X.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2005
• Subjects: Capital budgeting; decision analysis; investment timing; network externalities; option pricing; real options; stochastic processes; technology adoption; Computer Sciences; Information Security; Management Information Systems
• Online Access: https://ink.library.smu.edu.sg/sis_research/2142; https://ink.library.smu.edu.sg/context/sis_research/article/3142/viewcontent/Technology_competition_and_optimal_investment_timing_A_real_options_perspective.pdf
• Institution: Singapore Management University

Companies often choose to defer irreversible investments to maintain valuable managerial flexibility in an uncertain world. For some technology-intensive projects, technology uncertainty plays a dominant role in affecting investment timing. This article analyzes the investment timing strategy for a...