ECONOMIC-MATHEMATICAL MODEL OF THE OPTIMAL INVESTMENT WITH REGARDS TO THE NETWORK SIZE AS THE MARKET PARTICIPANTS SHARE

The economic-mathematical model of investment, which involves a situation where the company has an opportunity to invest in production of goods/services at the market that is characterized by uncertainty has been built. The cost of investment project, taking into account the risk-free interest rate and the trend component, the time of irreversible investment and the level of quality of manufactured products (goods or services) at the market with stochastic demand, positive network externals and competitive penetration have been determined for the investigated model. Competitive penetration is specified by the optimal investment solution of competing company. Comparison of cases with a fixed and regulated level of product quality during production has been made to determine additional component of the investment option cost arisen by the possibility of regulation of the products level of quality (goods or services) in production process.

cost of investment project, level of product quality, optimal investment threshold, network externalities, volatility, economic-mathematical model, investment, goods, product quality, usefulness function, option of investment, market uncertainty