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The paper considers an oligopolistic industry in which pollution is a by-product of production. Firms are assumed to have emission permits that restrict the amount that they pollute. These permits are assumed to be tradeable and the paper discusses a structure in which the same set of firms...
Persistent link: https://www.econbiz.de/10011091126
In the strategic investment under uncertainty literature the trade off between the value of waiting known from single decision maker models and the incentive to preempt competitors is mainly studied in duopoly models.This paper aims at studying competitive investments in new markets where more...
Persistent link: https://www.econbiz.de/10011091736
This paper considers the problem of investment timing under uncertainty in a duopoly framework.When both firms want to be the first investor a coordination problem arises.Here, a method is proposed to deal with this coordination problem, involving the use of symmetric mixed strategies.The method...
Persistent link: https://www.econbiz.de/10011090852
We consider a firm's decision to replace an existing production technology with a new, more cost-efficient one.Kulatilaka and Perotti [1998, Management Science] nd that, in a two-period model, increased product market uncertainty could encourage the firm to invest strategically in the new...
Persistent link: https://www.econbiz.de/10011091411
As becomes apparent from the standard text books in industrial organization (cf.Tirole, 1988, The Theory of Industrial … theory of strategic real options can be used to fill this empty hole .Based on the work by Smets (1991) standard models are …
Persistent link: https://www.econbiz.de/10011091572