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In this paper we study the economic feasibility of constructing a 560 MW coal-fired power plant in Turkey, using real options theory. We start from a short review of the Turkish electricity market as well as the literature on real options theory and power plant investment. We then investigate...
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In a continuous-time framework we study the technology and investment choice problem of a continuous co … flexible technology allowing for such option. Investment is irreversible and flexibility is costly. The problem is solved … determining in the light of future prospects the optimal revision and then playing backward fixing the investment timing rule …
Persistent link: https://www.econbiz.de/10003872196
taxes on investment timing under uncertainty and irreversibility and the propensity to carry out risky projects. Using a …-induced changes in investment timing may significantly affect the income and wealth distribution. We analyze the impact of wealth …-risk investments. Using either historical cost or fair value accounting may affect investment timing ambiguously. Thus, the design of …
Persistent link: https://www.econbiz.de/10011387385
taxes on investment timing under uncertainty and irreversibility and the propensity to carry out risky projects. Using a …-induced changes in investment timing may significantly affect the income and wealth distribution. We analyze the impact of wealth …-risk investments. Using either historical cost or fair value accounting may affect investment timing ambiguously. Thus, the design of …
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A principal decides when to exercise a real option. A biased agent influences this decision by strategically disclosing information. Committing to disclose all information with delay is the optimal way to persuade the principal to wait. Without dynamic commitment, this promise is credible only...
Persistent link: https://www.econbiz.de/10011864710