This dissertation comprises of two parts. The first part focusses on the optimal investment problem of incumbent firms when they are offered the option to start the production of a new product that yields an innovation compared to the established product. We start with the incumbent-entrant problem in Chapter 2. Chapter 3 looks at incumbent firms that have the option to expand their current production lines by offering a new generation of the existing product. In Chapter 4, we look at the situation where incumbent firms can choose their optimal moment to replace their current technology for a new, better, technology. The second part of this dissertation looks at the optimal investment timing in a setting with a birth-death process.
|Qualification||Doctor of Philosophy|
|Award date||1 Sep 2017|
|Place of Publication||Tilburg|
|Publication status||Published - 2017|