Choice of investment strategy of firms under demand uncertainty

Intensive competition on global markets forces companies to make their investment decisions in more uncertain environment than before. We study impact of investment strategy of a firm on its financial performance and efficiency of investment under demand uncertainty. The main distinguishing feature of the proposed analysis scheme is consideration of the relationship between an alternative strategy chosen and scenario conditions (market dynamics), which is modeled as a negative feedback during simulation. This paper describes the mathematical model, which implements the proposed analytical scheme of analysis.