Models of Capital Investments with Private Information and Incentives: a Selective Review |
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| Authors: | Rick Antle,& John Fellingham |
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| Affiliation: | Professor at Yale School of Management,;H.P. Wolfe Chair in Accounting at Fisher College of Business, Ohio State University. |
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| Abstract: | The purpose of this paper is to selectively review research that addresses capital budgeting decisions in settings characterized by dispersed information and incentive problems. The papers are theoretical; they formulate and analyze models that vary in the number of periods considered, the number of economic actors involved, and the number of alternative projects available. The aims of the review are to describe some of the formulations that have been studied, to highlight their key economic and mathematical properties, to reveal their common economic forces, and to collect and organize their basic results. |
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| Keywords: | capital budgeting capital rationing capital investments private information |
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