...heliocentric theory that it was not the earth, but the sun that was the center of the universe. His book, “On the Revolution of the Heavenly Spheres” laid the groundwork for future observations and discoveries and his work became known as the Copernican model. Galileo’s observations through the use of a telescope he built, was able to provide the evidence needed to support the heliocentric theory. In 1572 Tyler Brahe discovered a new star and after sixteen months it disappeared from site. This discovery conflicted with earlier views that the stars were fixed. (Space Discovery website, n.d.) Based on his observations and measurements of our solar system, Brahe proposed a model that fell in between the Ptolemaic and Copernican models. (The Obervations of Tycho Brahe, n.d.) His discoveries and writings were central to the advancement in understanding of our solar system. Johannes Kepler discovered that the planets orbit around the sun in an elliptical pattern, rather than circular. His second conclusion was that the closer a planet is to the sun, the faster it moves. (Space Discovery website, n.d.) Third, he discovered that “the existence of a mathematical relationship between a planet's distance from the Sun and its orbital...
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...Simulaion Monte Carlo Option Price is a method often used in Mathematical finance to calculate the value of an option with multiple sources of uncertainties and random features, such as changing interest rates, stock prices or exchange rates, etc.. This method is called Monte Carlo simulation, naming after the city of Monte Carlo, which is noted for its casinos. In my project, I use Mathematica, a mathematics computer software, we can easily create a sequence of random number indicating the uncertainties that we might have for the stock prices for example. 0.2 Pricing Financial Options by Flipping a Coin A distcrete model for change in price of a stock over a time interval [0,T] is √ Sn+1 = Sn + µSn ∆t + σSn εn+1 ∆t, S0 = s (1) where Sn = Stn is the stock price at time tn = n∆t, n = 0, 1, ..., N − 1, ∆t = T /N , µ is the annual growth rate of the stock, and σ is a measure of the stocks annual price volatility or tendency to fluctuate. Highly volatile...
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...among variables Empirical research seek to reveal causal relationships: cause/treatment effect Treatment or costs = variables which are subject to intervention (change) Direction & magnitude of effects? Causal Question 1. Hormone Therapy does HRT risk of coronary events? Causal Question 2.Class size does redcing class size improce outcomes of elementary school? A. pupils get more attention, less class disruptions = better grades Smaller classes = expensive, only possible if they produce better outcomes Potential outcomes & treatment effects of binary treatments Outcome (yi) without treatment: Di = 0 Outcome (yi) with treatment: Di = 1 TE (treatment effect)= difference between potential outcomes: Counterfactuals: Fundamental problem of casual inference (Holland) Not able to observe both potential outcomes (y1i & y0i) (would need parallel world) Outcome that is not observable = counterfactual outcome Average treatment effects (ATE) Estimate average effect in target population (probability that y occurs when D has already happened) straightforward: simple comparison of means estimation of ATE 1. collect data from target population 2. identify individuals with/without treatment 3. Compare means straightforward is Naiv – sure that difference between groups is due to the treatment? strokes HRT recession effect treatment Confounding factors No! other factors may explain the differences woman who receive hormone treatment...
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...vantage//~‘L~ FIRST-MOVER ADVANTAGES Marvin B. Lieberman David B. Montgomery’ October 1987 Research Paper No. 969 1The authors are, respectively, Assistant Professor of Business Policy, and Robert A. Magowan Professor of Marketing, at the Stanford Business School. We thank Piet Vanden Abeele, Rajiv Lal, Mark Satterthwaite and Birger Wernerfelt for helpfiul discussions on earlier drafts. The Strategic Management Program at Stanford Business School provided financial support. / ~‘N ~ Abstract This article surveys the theoretical and empirical literature on mechanisms that confer advantages and disadvantages on first-mover firms. Major conceptual issues are addressed, and recommendations are given for future research. Managerial implications are also considered. INTRODUCTION What, exactly, are first-mover advantages? Under what conditions do they arise, and by what specific mechanisms? Do first-movers make aboveaverage profits? And when is it in a firm’s interest to pursue first-mover opportunities, as opposed to allowing rivals to make the pioneering investments? In this paper we examine these and other related questions. We categorize the mechanisms that confer advantages and disadvantages on first-mover firms, and critically assess the relevant theoretical and empirical literature. The recent burgeoning of theoretical work in industrial economics provides a rich set of models that help make our understanding of first-mover advantages more precise. There...
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...FIRST-MOVER ADVANTAGES Marvin B. Lieberman David B. Montgomery’ October 1987 Research Paper No. 969 //~‘L~ 1The authors are, respectively, Assistant Professor of Business Policy, and Robert A. Magowan Professor of Marketing, at the Stanford Business School. We thank Piet Vanden Abeele, Rajiv Lal, Mark Satterthwaite and Birger Wernerfelt for helpfiul discussions on earlier drafts. The Strategic Management Program at Stanford Business School provided financial support. / ~‘N ~ Abstract This article surveys the theoretical and empirical literature on mechanisms that confer advantages and disadvantages on first-mover firms. Major conceptual issues are addressed, and recommendations are given for future research. Managerial implications are also considered. INTRODUCTION What, exactly, are first-mover advantages? Under what conditions do they arise, and by what specific mechanisms? Do first-movers make aboveaverage profits? And when is it in a firm’s interest to pursue first-mover opportunities, as opposed to allowing rivals to make the pioneering investments? In this paper we examine these and other related questions. We categorize the mechanisms that confer advantages and disadvantages on first-mover firms, and critically assess the relevant theoretical and empirical literature. The recent burgeoning of theoretical work in industrial economics provides a rich set of models that help make our understanding of first-mover advantages more precise. There is...
Words: 11961 - Pages: 48
