Abstract
We consider investments in development projects within competitive environments where the "winner takes everything". Under stationary uncertainty, it is optimal to start investing immediately at full capacity and continue until exhausting the allocated budget. For non-stationary environments, active investment, possibly deferred, will always be at full capacity; an example demonstrates that further tractable structure may not be available.
Original language | English |
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Pages (from-to) | 657-661 |
Number of pages | 5 |
Journal | Operations Research Letters |
Volume | 36 |
Issue number | 6 |
DOIs | |
State | Published - Nov 2008 |
Keywords
- Development projects
- Optimal burn rates
- Optimal stopping rules
ASJC Scopus subject areas
- Software
- Management Science and Operations Research
- Industrial and Manufacturing Engineering
- Applied Mathematics