Optimal investment timing in the dry bulk shipping sector

Please use this identifier to cite or link to this item: https://hdl.handle.net/20.500.14279/9414

Title:	Optimal investment timing in the dry bulk shipping sector
Authors:	Gkochari, Christiana C.
Major Field of Science:	Social Sciences
Field Category:	Economics and Business
Keywords:	Boom-and-bust cycles;Dry bulk shipping;Investment strategy;Option games;Perfect competition;Time to build
Issue Date:	1-Jul-2015
Source:	Transportation Research Part E: Logistics and Transportation Review, 2015, vol. 79, pp. 102-109
Volume:	79
Start page:	102
End page:	109
DOI:	http://dx.doi.org/10.1016/j.tre.2015.02.018
Journal:	Transportation Research Part E: Logistics and Transportation Review
Abstract:	The aim of this paper is to illustrate, for the first time, the performance of optimal perfectly competitive investment strategies based on option games in dry bulk shipping. Using a dataset of the Capesize market development over the period January 2000-May 2013 the author derives the stochastic dynamic equilibrium in that market. Moreover, the author examines the effect of newbuildings completion delays and finds that moving from completion delays to no time-to-build reduces the trigger value. The current analysis brings about additional insights and helps explain the existence of boom-and-bust cycles in shipping.
URI:	https://hdl.handle.net/20.500.14279/9414
ISSN:	13665545
DOI:	10.1016/j.tre.2015.02.018
Rights:	© Elsevier
Type:	Article
Affiliation :	Cyprus University of Technology
Publication Type:	Peer Reviewed
Appears in Collections:	Άρθρα/Articles

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