Optimal Procurement and Investment In New Technologies Under Uncertainty
Speaker
Abstract
We study a buyer's optimal investment strategy for new technologies when costs evolve stochastically and are private information to the suppliers. In a continuous time setting, we show how the asymmetric information on the stochastic variables leads to delays in investment compared to the real option benchmark. We also suggest a payment structure that implements the buyer's optimal investment timing as a Vickrey-type auction.
- This seminar is organised due to the job opening of assistant professor we currently have in the Organisation, Strategy and Entrepreneurship group.
Information
- Type
- Research Seminar
- Programme
- Strategy & Entrepreneurship
- Date
- Fri. 14 Mar. 2014
- Time
- 11:15 - 12:15
- Location
- Tinbergen Building H12-30
