We model the production of complex goods in a large supply network. Each firm sources several essential inputs through relationships with other firms. Individual are at risk idiosyncratic failure, which threatens to disrupt production. To protect against this, firms multisource and strategically invest make stronger, trading off cost investment benefits increased robustness. A network is called...

Ships are a means of transportation over the sea, where ships play vital role in socio-economic aspect through their distribution function between regions. One part ship that is often damaged hull ship. The cause damage corrosion. high and low level corrosion on salinity content seawater. This study aims to determine effect seawater rate plate with media taken from waters port Tanjung Emas Sema...

Abstract There is mixed evidence on whether the marginal dollar spent corporate social responsibility due to agency problems. We propose an approach by modeling how 2003 dividend tax cut, which increased after-tax insider ownership and better aligned managerial shareholder interests, affected firm responsibility. confirm key predictions of our model: following moderate insider-ownership firms e...

In this work, the electromechanical properties of a lead zirconate titanate-poly(vinylidenefluoride-trifluoroethylene) ceramic-polymer composite on thin brass and steel substrates were investigated. Samples stencil printed metal foils cured at 120 °C. The effective transverse piezoelectric coefficient (d31eff) was calculated by utilizing converse effect measuring displacement cantilever sample’...

The regulation of telecommunications, railroads, and other network industries has been based on mandatory unbundling and facilities sharing – entrants have the option to lease part or all of incumbents’ facilities if and when they desire, at rates determined by regulators. This flexibility is of great value to entrants, but because investments are largely irreversible, it is costly to supply by...

We use a Wicksellian single rotation framework to analyze the impact of the intertemporally fluctuating and stochastic mean-reverting interest rate process on the optimal harvesting threshold and thereby the expected length of the rotation period, when forest value is also stochastic following geometric Brownian motion and landowners are risk-averse. We provide an explicit solution for the two-...

We examine the effect of competition on investment decisions in an industry in which each firm has a completely irreversible investment opportunity and the product market has positive externalities for a small market size and negative externalities for a large market size. In the latter case, which corresponds to the traditional competitive industries, firms invest sequentially as market profit...

Both the equity premium puzzle and the credit spread puzzle address the problem of a reasonable size of agents’ risk aversion. The empirical estimation of risk aversion parameters is impeded by the fact that observed prices depend on risk preferences and probability beliefs. The market for German redemption lottery bonds constitutes a clean environment to estimate risk aversion coefficients fro...

In the standard real options approach to investment under uncertainty, agents formulate optimal policies under the assumptions of risk neutrality or perfect capital markets. However, in most situations, corporate executives face incomplete markets either because they receive compensation packages that restrict their portfolios or because cash flows from the firm’s investment opportunities are n...