Optimal selling time in livestock production
Carlos Torres Carbonell·Javier García Fronti·Fernando Tohmé·Patricia Chimeno·Gastón Silverio Milanesi
Purpose This paper analyzes the application of real options to livestock production. It evaluates the strategic flexibility in determining the optimal selling time for livestock, considering the technological and market risks involved in its production. Design/methodology/approach Based on a data sample of 300 records collected over the past 15 years, a biophysical-economic model was developed and simulated using an iterative stochastic procedure. Findings The alternatives that provide the highe