Small data global existence for the semilinear wave equation with space-time dependent damping

In this paper we consider the critical exponent problem for the semilinear wave equation with space-time dependent damping. When the damping is effective, it is expected that the critical exponent agrees with that of only space dependent coefficient case. We shall prove that there exists a unique global solution for small data if the power of nonlinearity is larger than the expected exponent. Moreover, we do not assume that the data are compactly supported. However, it is still open whether there exists a blow-up solution if the power of nonlinearity is smaller than the expected exponent

Hybrid or Electric Vehicles? A Real Options Perspective

This paper investigates the decision of an automaker concerning the alternative promotion of a hybrid vehicle (HV) and a full electric vehicle (EV). We evaluate the HV project by considering the option to change promotion from the HV to the EV in the future. The results not only extend previous findings concerning American options on multiple assets, but also include several new implications. One notable observation is that the increased market demand for EVs can accelerate the promotion of the HV because of the embedded option.real options, American options on multiple assets, exercise region, alternative projects, hybrid and electric vehicles.

Preemptive Investment Game with Alternative Projects

This paper derives a preemptive equilibrium in strategic investment in alternative projects. The problem is formulated in a real options model with a multidimensional state variable that represents project-specific uncertainty. The proposed method enables us to evaluate the value of potential alternatives. The results not only extend previous studies with a one-dimensional state variable but also reveal new findings. Preemptive investment takes place earlier and the project value becomes lower if the numbers of both firms and projects increase by the same amount. Interestingly, a strong correlation among profits from projects, unlike in a monopoly, plays a positive role in moderating preemptive competition.strategic real options, preemption, alternative projects, stopping game.

A model for determining whether a firm should exercise multiple real options individually or simultaneously

We develop a model for determining whether a firm should exercise two real options individually or simultaneously. The simultaneous exercise of both options has positive synergy, such as economies of scale, scope, and networks, while separate exercise of each option benefits from project flexibility. This tradeoff determines the optimal exercise policy. We investigate the static and dynamic management of multiple real options. A firm under static management determines the type of exercise of real options ex ante; on the other hand, a firm under dynamic management makes the decision at the time of exercise. The analysis reveals the gap between the two styles of managing. Most importantly, we highlight the advantage of dynamic management over static management, particularly for weakly correlated markets. We also explain empirical implications regarding a firmfs entry into several countries and regions in Asia.multiple real options, optimal stopping, exercise region, entry into Asia

Real Options Valuation of Abandoned Farmland

I investigate the decision-making process of an owner of abandoned farmland that is currently restricted to agricultural use but will be available for nonagricultural use in the future. I find that a slight probability of land conversion greatly increases the land value and discourages the owner from cultivating the land. I also observe that a small gap in the anticipation of land conversion prevents the owner from selling or leasing the land to a more efficient farmer.real option, abandoned farmland, land development, land conversion.