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This study investigates the design of the royalty rate in a first-price auction across three types of investments … royalty rate for the three types of investments exhibits two different patterns. When investment is either incremental or … charge differential royalty rates for different types of investments. …
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This paper proposes a real option capacity expansion model for power generation with several technologies that differ in operation and investment costs. The economy is assumed perfectly competitive and the instantaneous payoff accruing from the generation system is the instantaneous welfare...
Persistent link: https://www.econbiz.de/10010927715
This paper proposes a real option capacity expansion model for power generation with several technologies that differ in operation and investment costs. The economy is assumed perfectly competitive and the instantaneous payoff accruing from the generation system is the instantaneous welfare...
Persistent link: https://www.econbiz.de/10010555873
This paper documents the recent slowdown in investment in India and explores its underlying causes. The sharp investment deceleration has sparked an intense debate about the role of interest rates, as well as business confidence and economic policy uncertainty. Our results suggest that while...
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payoffs are stochastic due to political uncertainty and investments are partially reversible. Across the board we find that …
Persistent link: https://www.econbiz.de/10014078132
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