GPS, Inc. A case of investment under uncertainty

Darren Hudson, Lisa House, Barry Barnett, Murat Isik

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

Johnny Williams, president of Global Positioning Solutions, Inc., is considering entering the market for providing remotely sensed imagery and associated prescriptions to farmers. A large initial investment is required and additional investments will be needed if the business expands. Johnny is faced with trying to predict demand for a product that is not currently available in his market area. The case prompts students to discuss the trade-off between losing "first-mover" advantage versus the potential value of waiting for additional information in a highly uncertain market demand.

Original languageEnglish
Pages (from-to)303-312
Number of pages10
JournalReview of Agricultural Economics
Volume26
Issue number2
DOIs
StatePublished - Jun 2004

ASJC Scopus subject areas

  • Agronomy and Crop Science
  • Economics and Econometrics

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