Optimal investment strategies for flexible resources, considering pricing and correlated demands
成果类型：
Article
署名作者：
Bish, EK; Wang, Q
署名单位：
Virginia Polytechnic Institute & State University
刊物名称：
OPERATIONS RESEARCH
ISSN/ISSBN：
0030-364X
DOI：
10.1287/opre.1040.0138
发表日期：
2004
页码：
954-964
关键词：
摘要：
We study the optimal resource investment decision faced by a two-product, price-setting firm that operates in a monopolistic setting and employs a postponed pricing scheme. The firm has the option to invest in dedicated resources as well as a more expensive, flexible resource that can satisfy both products. While the resource investment decision is made under demand uncertainty, pricing and resource allocation decisions are postponed to the time when demand curves are realized. Our analysis provides the structure of the firm's optimal resource investment strategy as a function of demand parameters and investment costs, and shows that the flexible resource investment decision follows a threshold policy. We also show that it can be optimal for the firm to invest in the flexible resource even when demand patterns are perfectly positively correlated. The reason for flexible capacity investment in this case is financial rather than risk pooling. On the other hand, we show that it can be optimal for the firm not to invest in the flexible resource even when demand patterns are perfectly negatively correlated. The flexible resource investment decision in this case depends on the profitability of the two products. Based on our analysis, we provide principles on the firm's optimal resource investment decision.