International Journal of Real Options and Strategy
Online ISSN : 2186-4667
ISSN-L : 2186-4667
Volume 3
Displaying 1-3 of 3 articles from this issue
Theoretical Paper
  • Hiroto Suzuki, Makoto Goto, Takahiro Ohno
    2015 Volume 3 Pages 1-12
    Published: 2015
    Released on J-STAGE: December 25, 2015
    Retailers, such as discount stores and supermarkets, frequently conduct price promotions, and promotions for stockable products are particularly frequent. In that category, consumers tend to purchase at a lower price and postpone purchasing at a higher price. That is, they make a decision to purchase or postpone purchasing according to their memories of past prices and the current price. In the other words, under price uncertainty, they make their purchase decision by considering the option value of postponing purchase. Therefore, we develop a consumer purchase incidence model and brand choice model considering the postpone option by using a real options approach.
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  • Motoh Tsujimura
    2015 Volume 3 Pages 13-26
    Published: 2015
    Released on J-STAGE: December 25, 2015
    This paper investigates a pollutant abatement investment under ambiguity in a two-period setting. We consider a representative consumer and firm in an economy and formulate the social welfare maximization problem. Then we numerically derive the optimal level of abatement investment. Furthermore, we analyze the comparative static effects of the model parameters and find increased ambiguity encourages pollutant abatement investment.
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