A Model for Funding Interrelated Research and Development Projects Under Uncertainty

Carole A. Aldrich

Journal of Financial and Quantitative Analysis, 1974, vol. 9, issue 1, 117-128

Abstract: Selection of funding levels for research and development (R & D) projects is a major problem facing the firm. Models for selecting funding levels have frequently been formulated under the assumptions that the projects can be evaluated independently (Aldrich [1], Hess [4], Lucas [6]) or that the projects are interrelated only in terms of requirements for specialized input resources (Asher [2]). In fact, the projects of a given firm are likely to be highly interdependent, either in the sense that progress on one project eases work on another (research interdependency) or in the sense that completion of one project alters the market situation of another (output interdependency). While Weingartner [8] discusses these interdependencies, he does so under the assumption that the project funding level is fixed.

Date: 1974
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.cambridge.org/core/product/identifier/ ... type/journal_article link to article abstract page (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cup:jfinqa:v:9:y:1974:i:01:p:117-128_01

Access Statistics for this article

More articles in Journal of Financial and Quantitative Analysis from Cambridge University Press Cambridge University Press, UPH, Shaftesbury Road, Cambridge CB2 8BS UK.
Bibliographic data for series maintained by Kirk Stebbing ().