کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
5053506 | 1476511 | 2016 | 11 صفحه PDF | دانلود رایگان |
- This paper analyzes the firm's investment and hiring/firing optimal policies.
- It provides a general result when the market demand is mean reverting.
- This allows the extension of Tserlukevich (2008) and Letifi and Prigent (2014).
- We analyze the impact of the mean-reverting parameters on both the growth and decay options.
We analyze the firm's investment and hiring/firing optimal strategies when the market demand is mean reverting and with potential decision reversibility. In this framework, we determine the values of both investment and hiring/firing growth and shutdown options. This allows the extension of Tserlukevich (2008) and Letifi and Prigent (2014) when taking account of a mean reverting demand. We analyze the quasi-explicit solutions for the optimal firm's value, especially the influence of mean-reverting parameters on both the growth and decay options.
Journal: Economic Modelling - Volume 58, November 2016, Pages 569-579