IDEAS home Printed from https://ideas.repec.org/h/spr/lnechp/978-3-540-93833-0_4.html
   My bibliography  Save this book chapter

Model Properties

In: The Value of Information Updating in New Product Development

Author

Listed:
  • Christian Artmann

    (Immenstadt)

Abstract

Having developed a general valuation framework that combines Bayesian updating with real options analysis in the previous chapter, this chapter aims at analyzing the model and deriving properties in closed form.We will hereby study 1) how the project value changes if the uncertainty is reduced through an information update, 2) under which conditions it will be most beneficial to conduct an update, and 3), how the underlying cost structure influences the derived results. For the derivation of these properties it is insightful to maintain the distinction between the two perspectives (ex ante and ex post) as discussed in the previous chapter. We will start with an analysis of the corresponding properties of an information update once the signal is observed and hence, known. These results can then be applied to the analysis of the actual point of interest, namely model properties in expectation of a later information update.

Suggested Citation

  • Christian Artmann, 2009. "Model Properties," Lecture Notes in Economics and Mathematical Systems, in: The Value of Information Updating in New Product Development, chapter 4, pages 1-27, Springer.
    • Handle: RePEc:spr:lnechp:978-3-540-93833-0_4
    DOI: 10.1007/978-3-540-93833-0_4
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:lnechp:978-3-540-93833-0_4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.