Comincioli, Nicola; Hagspiel, Verena; Kort, Peter M.; … - 2020
The mothballing option has been studied in the literature, but mainly in decision theoretic frameworks. This paper … apply the mothballing option in times of low demand. Our main results are threefold. First, we find that under low demand … uncertainty, the mothballing option has a negative effect on the value of the entrant. Second, a large market share of the entrant …