Journal article
The investment decision with technological and market uncertainties
Abstract
This paper examines how technological uncertainty affects current investment; specifically, what is the impact on a firm’s investment in an existing technology when an improved technology might arrive in the future. The firm can invest in the current technology and upgrade to the new technology after its arrival (sequential investing), or it can bypass the current technology and invest directly in the new technology (leapfrogging). The main …
Authors
Fan Y; Sarkar S; Zhang C
Journal
European Journal of Finance, Vol. 25, No. 2, pp. 116–138
Publisher
Taylor & Francis
Publication Date
January 22, 2019
DOI
10.1080/1351847x.2018.1486865
ISSN
1351-847X