A01=Robert K. Dixit
A01=Robert S. Pindyck
Arbitrage
Asset
Author_Robert K. Dixit
Author_Robert S. Pindyck
Average variable cost
Brownian motion
Calculation
Call option
Capital asset pricing model
Capital cost
Capital gain
Cash flow
Category=KFFH
Category=KFFM
Category=KJMV1
Commodity
Competitive equilibrium
Convenience yield
Cost curve
Cost of capital
Current Price
Demand curve
Depreciation
Differential equation
Discounts and allowances
Dividend
Dynamic programming
Economic equilibrium
Economics
Economist
eq_bestseller
eq_business-finance-law
eq_isMigrated=1
eq_isMigrated=2
eq_nobargain
eq_non-fiction
Expected value
Expenditure
Future value
Geometric Brownian motion
Industrial organization
Interest rate
Investment
Ito's lemma
Jump process
Long run and short run
Marginal cost
Market portfolio
Mathematical optimization
Net Payoff
Net present value
Oil reserves
Operating cost
Opportunity cost
Option value (cost-benefit analysis)
Partial differential equation
Present value
Price of oil
Probability
Production function
Profit (economics)
Quantity
Random variable
Rate of return
Rational expectations
Real options valuation
Requirement
Revenue
Shortfall
Standard deviation
State variable
Stochastic process
Supply (economics)
Supply and demand
Tax
Textbook
Trade-off
Uncertainty
Value (economics)
Variable cost
Wiener process
Product details
- ISBN 9780691034102
- Weight: 851g
- Dimensions: 152 x 235mm
- Publication Date: 30 Jan 1994
- Publisher: Princeton University Press
- Publication City/Country: US
- Product Form: Hardback
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How should firms decide whether and when to invest in new capital equipment, additions to their workforce, or the development of new products? Why have traditional economic models of investment failed to explain the behavior of investment spending in the United States and other countries? In this book, Avinash Dixit and Robert Pindyck provide the first detailed exposition of a new theoretical approach to the capital investment decisions of firms, stressing the irreversibility of most investment decisions, and the ongoing uncertainty of the economic environment in which these decisions are made. In so doing, they answer important questions about investment decisions and the behavior of investment spending. This new approach to investment recognizes the option value of waiting for better (but never complete) information. It exploits an analogy with the theory of options in financial markets, which permits a much richer dynamic framework than was possible with the traditional theory of investment. The authors present the new theory in a clear and systematic way, and consolidate, synthesize, and extend the various strands of research that have come out of the theory.
Their book shows the importance of the theory for understanding investment behavior of firms; develops the implications of this theory for industry dynamics and for government policy concerning investment; and shows how the theory can be applied to specific industries and to a wide variety of business problems.
Avinash K. Dixit is John J. F. Sherrerd '52 University Professor of Economics at Princeton University. His most recent book is Thinking Strategically, with Barry Nalebuff (Norton). Robert S. Pindyck is Mitsubishi Bank Professor of Economics at the Sloan School of Management, MIT. His books include Econometric Models and Economic Forecasts, with Daniel L. Rubinfeld (McGraw-Hill).
