This paper extends Boyle and Guthrie (2003) to investigate the interdependent effects of asymmetric financing capacities and investment costs on investment timing decisions in a duopoly with a first-mover advantage. We demonstrate several novel findings. First, suffering a significant cost...

Breakthroughs and backlashes have marked progress in the development and diffusion of Artificial Intelligence (AI). These shocks make the investment in developing an Artificial General Intelligence (AGI) subject to considerable uncertainty. This paper applies a real options model, extended to...

Using detailed project-level data, we document a novel mechanism through which information externalities distort investment. Firms anticipate information spillover from peers’ investment decisions and delay project exercise to learn from their peers’ outcomes. To establish a causal...

Modern conditions for real investment are generally associated with increasing uncertainty, which is even more relevant when evaluating innovative projects. Current innovation analysis methods using a linear model are outdated. At the same time, an open interactive model of the innovation...

The outbreak of COVID-19 has a huge negative impact on the firms’ business activities. This paper investigates the effects of COVID-19 pandemic on corporate investment and firm value from the real option perspective. Based on the real-option based model (ROM) proposed by Zhang (2000), we find...

One of the key elements in horizontal collaboration in supply chains is the determination of an agreement that spells out the terms of the agreement or contract. This is particularly important in the supply chains of some agricultural products such as fresh produce which are subject to high...

In this study, we evaluated investment in a utility-scale solar power plant using a real-option approach (ROA). Despite the fact that ROAs have been widely applied in the literature, the deferring option for a utility-scale power plant has not been fully examined, especially in the context of...

Breakthroughs and backlashes have marked progress in the development and diffusion of Artificial Intelligence (AI). These shocks make the investment in developing an Artificial General Intelligence (AGI) subject to considerable uncertainty. This paper applies a real options model, extended to...