Arbeitspapier
Optimal Capacity Adjustment by a Multiplant Firm
The paper studies the effect of scale economies on the optimal capacity adjustment of a mutiplant firm. It is shown that with increasing economies of scale plants are ranked in decreasing order, after which the optimal choice is to scrap the largest one. On the contrary, if there are decreasing economies of scale the optimal policy would be to wait before abandoning intermediate plants. That is, decreasing economies of scale amplify the effect of uncertainty on disinvestment and tend to increase the plant's life.
- Sprache
-
Englisch
- Erschienen in
-
Series: Nota di Lavoro ; No. 28.1999
- Klassifikation
-
Wirtschaft
Production, Pricing, and Market Structure; Size Distribution of Firms
- Thema
-
Exit
Option value
Irreversibility
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Moretto, Michele
- Ereignis
-
Veröffentlichung
- (wer)
-
Fondazione Eni Enrico Mattei (FEEM)
- (wo)
-
Milano
- (wann)
-
1999
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Moretto, Michele
- Fondazione Eni Enrico Mattei (FEEM)
Entstanden
- 1999
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