INVESTORS' ASYMMETRIC VIEWS AND THEIR DECISION TO ENTER BRAZIL'S WIND ENERGY SECTOR

Detalhes bibliográficos
Autor(a) principal: Dalbem,Marta Corrêa
Data de Publicação: 2014
Outros Autores: Gomes,Leonardo Lima, Brandão,Luiz Eduardo Teixeira
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Pesquisa operacional (Online)
Texto Completo: http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-74382014000200319
Resumo: Market players' investment decisions sometimes surprise analysts, especially when projects that are less feasible in financial terms enter first in the market, before more viable projects. One possible explanation is that firms have different expectations concerning the future of the market. In this article we use the Option-Games approach for asymmetric duopolies to analyze investors' decisions in the first auction for wind power in Brazil, held in 2009, in which some less viable firms pushed more viable firms out of the auction. Our analysis shows that even small differences in the investors' views can yield this unexpected result. When uncertainty is low and expectations are symmetric, the outcome is a lower energy tariff as well as a stronger wind industry in Brazil, highlighting the importance of a clear and credible long term governmental policy, not only for the wind industry, but also for any other industry in its early stages.
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spelling INVESTORS' ASYMMETRIC VIEWS AND THEIR DECISION TO ENTER BRAZIL'S WIND ENERGY SECTORinvestment decisionsOption-GamesReal OptionsMarket players' investment decisions sometimes surprise analysts, especially when projects that are less feasible in financial terms enter first in the market, before more viable projects. One possible explanation is that firms have different expectations concerning the future of the market. In this article we use the Option-Games approach for asymmetric duopolies to analyze investors' decisions in the first auction for wind power in Brazil, held in 2009, in which some less viable firms pushed more viable firms out of the auction. Our analysis shows that even small differences in the investors' views can yield this unexpected result. When uncertainty is low and expectations are symmetric, the outcome is a lower energy tariff as well as a stronger wind industry in Brazil, highlighting the importance of a clear and credible long term governmental policy, not only for the wind industry, but also for any other industry in its early stages.Sociedade Brasileira de Pesquisa Operacional2014-08-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersiontext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-74382014000200319Pesquisa Operacional v.34 n.2 2014reponame:Pesquisa operacional (Online)instname:Sociedade Brasileira de Pesquisa Operacional (SOBRAPO)instacron:SOBRAPO10.1590/0101-7438.2014.034.02.0319info:eu-repo/semantics/openAccessDalbem,Marta CorrêaGomes,Leonardo LimaBrandão,Luiz Eduardo Teixeiraeng2015-10-09T00:00:00Zoai:scielo:S0101-74382014000200319Revistahttp://www.scielo.br/popehttps://old.scielo.br/oai/scielo-oai.php||sobrapo@sobrapo.org.br1678-51420101-7438opendoar:2015-10-09T00:00Pesquisa operacional (Online) - Sociedade Brasileira de Pesquisa Operacional (SOBRAPO)false
dc.title.none.fl_str_mv INVESTORS' ASYMMETRIC VIEWS AND THEIR DECISION TO ENTER BRAZIL'S WIND ENERGY SECTOR
title INVESTORS' ASYMMETRIC VIEWS AND THEIR DECISION TO ENTER BRAZIL'S WIND ENERGY SECTOR
spellingShingle INVESTORS' ASYMMETRIC VIEWS AND THEIR DECISION TO ENTER BRAZIL'S WIND ENERGY SECTOR
Dalbem,Marta Corrêa
investment decisions
Option-Games
Real Options
title_short INVESTORS' ASYMMETRIC VIEWS AND THEIR DECISION TO ENTER BRAZIL'S WIND ENERGY SECTOR
title_full INVESTORS' ASYMMETRIC VIEWS AND THEIR DECISION TO ENTER BRAZIL'S WIND ENERGY SECTOR
title_fullStr INVESTORS' ASYMMETRIC VIEWS AND THEIR DECISION TO ENTER BRAZIL'S WIND ENERGY SECTOR
title_full_unstemmed INVESTORS' ASYMMETRIC VIEWS AND THEIR DECISION TO ENTER BRAZIL'S WIND ENERGY SECTOR
title_sort INVESTORS' ASYMMETRIC VIEWS AND THEIR DECISION TO ENTER BRAZIL'S WIND ENERGY SECTOR
author Dalbem,Marta Corrêa
author_facet Dalbem,Marta Corrêa
Gomes,Leonardo Lima
Brandão,Luiz Eduardo Teixeira
author_role author
author2 Gomes,Leonardo Lima
Brandão,Luiz Eduardo Teixeira
author2_role author
author
dc.contributor.author.fl_str_mv Dalbem,Marta Corrêa
Gomes,Leonardo Lima
Brandão,Luiz Eduardo Teixeira
dc.subject.por.fl_str_mv investment decisions
Option-Games
Real Options
topic investment decisions
Option-Games
Real Options
description Market players' investment decisions sometimes surprise analysts, especially when projects that are less feasible in financial terms enter first in the market, before more viable projects. One possible explanation is that firms have different expectations concerning the future of the market. In this article we use the Option-Games approach for asymmetric duopolies to analyze investors' decisions in the first auction for wind power in Brazil, held in 2009, in which some less viable firms pushed more viable firms out of the auction. Our analysis shows that even small differences in the investors' views can yield this unexpected result. When uncertainty is low and expectations are symmetric, the outcome is a lower energy tariff as well as a stronger wind industry in Brazil, highlighting the importance of a clear and credible long term governmental policy, not only for the wind industry, but also for any other industry in its early stages.
publishDate 2014
dc.date.none.fl_str_mv 2014-08-01
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-74382014000200319
url http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-74382014000200319
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 10.1590/0101-7438.2014.034.02.0319
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv text/html
dc.publisher.none.fl_str_mv Sociedade Brasileira de Pesquisa Operacional
publisher.none.fl_str_mv Sociedade Brasileira de Pesquisa Operacional
dc.source.none.fl_str_mv Pesquisa Operacional v.34 n.2 2014
reponame:Pesquisa operacional (Online)
instname:Sociedade Brasileira de Pesquisa Operacional (SOBRAPO)
instacron:SOBRAPO
instname_str Sociedade Brasileira de Pesquisa Operacional (SOBRAPO)
instacron_str SOBRAPO
institution SOBRAPO
reponame_str Pesquisa operacional (Online)
collection Pesquisa operacional (Online)
repository.name.fl_str_mv Pesquisa operacional (Online) - Sociedade Brasileira de Pesquisa Operacional (SOBRAPO)
repository.mail.fl_str_mv ||sobrapo@sobrapo.org.br
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