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Chinese Journal of Management Science ›› 2008, Vol. 16 ›› Issue (3): 50-56.

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Effect of Unexpected Factors on Firms’ Decisions When New Technology Commercialization Project Can Be Suspended

YUAN Cai-qun, TONG Yun-huan, TANG Fang-cheng   

  1. Research Center for Technological Innovation, Tsinghua University, Beijing 100084, China
  • Received:2007-02-06 Revised:2008-03-14 Online:2008-06-30 Published:2008-06-30

Abstract: Under the assumption that the price of new technology commodities follows a mixed Brownian motion/Poisson jump process,strategic decisions of enterprise are analyzed and the impact of the factors which can lead the commodities'price to a jump change on the corporations' decisions is investigated.By certain numerical illustration,our research presents the optimal entry,suspension,restart and exit thresholds,and the dependence of these thresholds on Poisson parameters is studied.Further,the research finds that the possibility of suspending and restarting a project can decrease the firm's optimal entry and exit thresholds.

Key words: new technology commercialization, suspend, jump process, decision-making thresholds

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