IDEAS home Printed from https://ideas.repec.org/h/spr/lnechp/978-3-540-93833-0_5.html
   My bibliography  Save this book chapter

Numerical Study

In: The Value of Information Updating in New Product Development

Author

Listed:
  • Christian Artmann

    (Immenstadt)

Abstract

The analysis of our information updating valuation model in the previous section allowed us to derive several properties in closed form, e.g., the impact of a pure mean or a pure variance update, the effect of the uncertainty reduction on the (expected) value of information, and the role of the updating point in time on the expected project value. Other aspects, like the impact of a simultaneous mean-variance update on the project value or threshold values for a change of the underlying cost structure, turned out to be case dependent and hence, eluded a closed form analysis. For those properties, we will therefore resort to a numerical study in this chapter in order to derive further insights about our information updating model. Our objective is hereby 1) to illustrate the derived properties by studying a real NPD project example, 2) to study the impact of a general (i.e., both mean and variance) update of the market requirement distribution on the project value, 3) to analyze the effect of the update on the optimal managerial policy, and 4) to study the impact of the underlying model parameters on the expected project value and expected value of information.

Suggested Citation

  • Christian Artmann, 2009. "Numerical Study," Lecture Notes in Economics and Mathematical Systems, in: The Value of Information Updating in New Product Development, chapter 5, pages 1-37, Springer.
    • Handle: RePEc:spr:lnechp:978-3-540-93833-0_5
    DOI: 10.1007/978-3-540-93833-0_5
    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_5. 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.