We offer a simple explanation for oligopolistic reaction based on Bayesian learning by rival firms operating in an uncertain environment. We test the implications of the model through a discrete choice panel data sample of MNEs that have invested in Central and Eastern Europe over the period...

The hazard rate of investment is derived within a real option model, and its properties are analyzed in order to directly study the relation between uncertainty and investment. Maximum likelihood estimates of the hazard are calculated using a sample of MNEs that have invested in Central and...