Entry and Exit Decisions in a Symmetric Duopoly Option Game Model

Author(s):  
Li Gong ◽  
Jin Tian
2000 ◽  
Vol 37 (2) ◽  
pp. 547-559 ◽  
Author(s):  
J. Kate Duckworth ◽  
Mihail Zervos

We consider an investment model which generalizes a number of models that have been studied in the literature. The model involves entry and exit decisions as well as decisions relating to production scheduling. We then address the problem of its valuation from the standpoint of the dynamic programming approach. Our analysis results in a closed form analytic solution that can take qualitatively different forms depending on parameter values.


2008 ◽  
Vol 29 (6) ◽  
pp. 503-512 ◽  
Author(s):  
Man K. Leung ◽  
Trevor Young ◽  
Michael K. Fung

2008 ◽  
Vol 39 (8) ◽  
pp. 1278-1292 ◽  
Author(s):  
Michael Christensen ◽  
Thorbjørn Knudsen

2000 ◽  
Vol 60 (2) ◽  
pp. 335-360 ◽  
Author(s):  
Douglas A. Irwin

Did late-nineteenth-century U.S. tariffs promote infant industries? After earlier failures, the tinplate industry became established and flourished after receiving protection with the 1890 McKinley tariff. Treating producers' entry and exit decisions as endogenous, a probability model is estimated to determine the conditions under which domestic tinplate production will occur. Counterfactual simulations indicate that, without the McKinley duties, domestic tinplate production would have arisen about a decade later as U.S. iron and steel input prices converged with those in Britain. Although the traiff accelerated the industry's development, welfare calculations suggest that protection does not pass a cost-benefit test.


Stochastics ◽  
2014 ◽  
Vol 87 (2) ◽  
pp. 209-234 ◽  
Author(s):  
Yongchao Zhang

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