Saphores, Jean-Daniel; Gravel, Éric; Bernard, Jean-Thomas - Département d'Économique, Université Laval - 2003
; irreversibility; real options; interconnections.
JEL Classification: D81, L51.
1
Abstract
We consider a firm that must … irreversibility, a
standard cost-benefit approach is likely to yield incorrect decisions for the timing of the
regulatory process …, and the randomness of project benefits. Likewise,
irreversibility stems from the sunk costs associated with the …