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Rational Flexibility in Buyer-Seller Relationships — A Real Options Approach

  • Ellen Roemer
Part of the Business-to-Business-Marketing book series (BTBM)

Abstract

The aim of this chapter is to model the value of rational flexibility in buyer-seller relationships in order to explain the trade-off in flexibility and to derive implications for the management of buyer-seller relationships in a world of behavioral and environmental uncertainty. Instead of a transaction cost minimizing calculus that is common in TCE, I propose to choose institutions that maximize the value of rational flexibility.

Keywords

Real Option Switching Option Switching Point Geometric Brownian Motion Underlying Asset 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Deutscher Universitäts-Verlag/GWV Fachverlage GmbH, Wiesbaden 2004

Authors and Affiliations

  • Ellen Roemer

There are no affiliations available

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