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Synergies and Investment Decisions

Author

Listed:
  • Masao Nakagawa

    (The Graduate School of Economics Osaka University)

Abstract

I examine optimal investment policies when there are synergies between two investment projects, in that joint operation reduces operating costs. These synergies interactions between two investments projects, therefore two investments decisions can't be determined separately. These interactions suggest that decisions of conglomerate firms may be rational.

Suggested Citation

  • Masao Nakagawa, 2007. "Synergies and Investment Decisions," Economics Bulletin, AccessEcon, vol. 7(5), pages 1-11.
    • Handle: RePEc:ebl:ecbull:eb-07g30001
    as

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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • G3 - Financial Economics - - Corporate Finance and Governance

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