In this paper we analyse a dynamic model of investment under uncertainty in a duopoly, in which each firm has an option …. A simulation-based numerical example illustrates the model and shows the relative likelihoods of investment taking place …

I model the strategic interaction between firms, that face decisions on investment, forward contracts and spot market … quantities. For an investment decision that takes place after firms have contracted forward but before firms compete on the spot … market (medium term investment), competition becomes fierce. Thus, the efficiency gains from forward trading found by Allaz …

considered one of irreversible investment with a cost functional which is non convex with respect to the control variable. In … this paper we study the optimal entry into this investment plan. The optimal entry policy can have an irregular boundary …

We consider a real options model for the optimal irreversible investment problem of a profit maximizing company. The … two independent geometric Brownian motions. After paying a constant sunk investment cost, the company sells the products … on the market and thus receives a continuous stochastic revenue-flow. This investment problem is set as a twodimensional …

investment game formulated in continuous time in which reduced-form profits are subject to industry shocks. We show that the … rivals' investment are properly accounted for …