This study models airport capacity choice when a real option for expansion can be pur- chased. Facing demand uncertainty, an airport first determines the capacity for immediate investment (the prior capacity) and the size of the land or other resources to be reserved for possible future expansion (the reserve). Once demand is observed, the airport can use a portion of the reserve to build extra…
This paper, being complementary to existing perspectives, aims to examine the behaviors and the strategies of production migration of polluting firms from an economic point of view under appropriate decision conditions in terms of uncertain influence of supply chain support and green technology progress.