Investments in cost reductions are critical for the long run success of companies that operate in dynamic and stochastic market environments. This paper studies optimal investment in cost reductions as a real option under the assumption that a single firm faces two different sources of risk, stochastic demand and input prices. We derive optimal investment strategies for a monopoly as well as a ...

A partial occlusion of one or more of the coronary arteries due to atherosclerosis leads to an insufficient supply of blood to the myocardium and as a result to the reduction of its functioning (myocardial ischemia). A total occlusion blocks the blood supply completely, which generally leads to starvation of myocardial tissue (myocardial infarction). Magnetic resonance imaging (MRI) has proven ...

We estimate implied cost of equity capital (re) for a sample of firms from 1984 to 1998 using the Ohlson and Juettner (2000) model that does not make restrictive assumptions about clean surplus and payout policies. We find that re is strongly positively associated with conventional risk factors such as earnings variability, systematic and unsystematic return volatility, and leverage, and is neg...

In this paper I attempt to replicate for Sweden the Corrado, Hulten and Sichel (2006) and Marrano and Haskel (2006) working papers on spending on intangible assets in the US and the UK. Based on their measurement methods the total spending on intangibles in Sweden in 2004 was 277 billion SEK or 10.6 percent of total GDP. Based on total spending it can be estimated that total investment in intan...

We consider a simple general equilibrium model with imperfect competition. Firms are price taker in the input market and compete à la Cournot in some or all of the product markets (their technology displays constant returns to scale). We show that an increase in the number of firms does not always improve welfare. We also provide a characterization in terms of mark-up rates of the sectors for w...

Based on case studies of several firms, accounting researchers have argued that traditional costing systems constructed using volume-related drivers understate the true costs of variety and other non-volume drivers. As a result, managers do not have appropriate information to make optimal tradeoffs between the costs and benefits of such strategic cost drivers. This supposed distortion in optima...

Light Detection and Ranging (LiDAR) remote sensing has demonstrated potential in measuring forest biomass. We assessed the ability of LiDAR to accurately estimate forest total above ground biomass (TAGB) on an individual stem basis in a conifer forest in the US Pacific Northwest region using three different computer software programs and compared results to field measurements. Software programs...

Managing subscription journals and open access charges together has created challenges which may in part be dealt with by offsetting the two revenue streams against each other. In order to do this, it is necessary to have reliable financial data about the extent of the two interacting markets. Jisc Collections has been undertaking data collection regarding universities’ article publication char...

Competition authorities have a growing interest in assessing the effects of partial ownership arrangements. We show that the effects of such agreements on competition and welfare depend on the intensity of competition in the market and on the firms’ governance structure. When assessing the effects of partial ownership, competition policy has to consider both the financial interest and level of ...