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. …

The paper studies the interaction between cyclical uncertainty and investment in a stochastic real option framework … of the link between cyclical uncertainty and investment is quantified using simulations of the model. The chief …

impact of uncertainty and real options on the decision of working time, i.e. we examines the determinants of employment and …The standard literature on working time has modelled the decisions of firms in a deterministic framework in which firms …

rigid, non discretionary contracts. Delegation grants some flexibility in the choice of the action by the agent, but also …’ understanding of the possible circumstances in which actions will have to be chosen and their attitude towards risk and uncertainty …

pairs the lack of flexibility with the ability to commit in advance to a given (forward looking) rule. This solves the time …In a Case Law regime Courts have more flexibility than in a Statute Law regime. Since Statutes are inevitably … most economic decisions are already taken. Therefore, the advantage of flexibility for Case Law is unavoidably paired with …

This paper examines the impact of Knightian uncertainty upon optimal climate policy through the prism of a continuous-time … Knightian uncertainty accelerates climate policy, i.e. policymakers become more reluctant to postpone the timing of climate …

The possibility of low-probability extreme events has reignited the debate over the optimal intensity and timing of …-probability extreme events on environmental policy in a continuous-time real options model with “tail risk”. In a nutshell, our results …