Article ID: | iaor20102904 |
Volume: | 36 |
Issue: | 6 |
Start Page Number: | 657 |
End Page Number: | 661 |
Publication Date: | Nov 2008 |
Journal: | Operations Research Letters |
Authors: | Golany Boaz, Rothblum Uriel G |
We consider investments in development projects within competitive environments where the ‘winner takes everything’. Under stationary uncertainty, it is optimal to start investing immediately at full capacity and continue until exhausting the allocated budget. For non-stationary environments, active investment, possibly deferred, will always be at full capacity; an example demonstrates that further tractable structure may not be available.