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Strategic Investment Under Uncertainty : Merging Real Options with Game Theory

Huisman, Kuno; Kort, Peter; Pawlina, G.; Thijssen, J.J.J. - Tilburg University, Center for Economic Research - 2003

As becomes apparent from the standard text books in industrial organization (cf.Tirole, 1988, The Theory of Industrial Organization), the analysis of the e.ects of uncertainty within this field is yet underdeveloped.This paper shows that the new theory of strategic real options can be used to...

Persistent link: https://www.econbiz.de/10011091572

Finite Project Life and Uncertainty Effects on Investment

Huisman, Kuno; Kort, Peter; Gryglewicz, S. - Tilburg University, Center for Economic Research - 2006

This paper revisits the important result of the real options approach to investment under uncertainty, which states … that increased uncertainty raises the value of waiting and thus decelerates investment.Typically in this literature … that investment projects are usually considered to have a .nite life.The present paper studies investment projects with …

Persistent link: https://www.econbiz.de/10011092584

Effects of Strategic Interactions on the Option Value of Waiting

Huisman, Kuno; Kort, Peter - Tilburg University, Center for Economic Research - 1999

This paper considers an investment timing problem in a duopoly framework. The results of the seminal contribution by … scenario we have a preemption equilibrium with dispersed investment timing, while in the second scenario an equilibrium with … joint investment prevails. In the third scenario preemption holds in case uncertainty is low, and joint investment is the …

Persistent link: https://www.econbiz.de/10011092843

Strategic Investment Under Uncertainty and Information Spillovers

Huisman, Kuno; Kort, Peter; Thijssen, J.J.J. - Tilburg University, Center for Economic Research - 2001

Persistent link: https://www.econbiz.de/10011092917

Estimating net present value variability for deterministic models

Groenendaal, Willem van - Tilburg University, Center for Economic Research - 1995

For decision makers the variability in the net present value (NPV) of an investment project is an indication of the … about the stochastic character of the inputs. For large, longterm investment projects (such as energy infrastructures …

Persistent link: https://www.econbiz.de/10011092930

The effects of marketable pollution permits on the firm's optimal investment policies

Kort, Peter - Tilburg University, Center for Economic Research - 1992

Persistent link: https://www.econbiz.de/10011090339

Should smart investors buy funds with high returns in the past

Palomino, F.A.; Uhlig, H.F.H.V.S. - Tilburg University, Center for Economic Research - 1999

Persistent link: https://www.econbiz.de/10011090424

Investment Policy, Internal Financing and ownership Concentration in the UK

Renneboog, Luc; Goergen, M. - Tilburg University, Center for Economic Research - 2000

This paper investigates whether investment spending of firms is sensitive to the availability of internal funds ….Imperfect capital markets create a hierarchy for the different sources of funds such that investment and financial decisions are not … independent.The relation between corporate investment and free cash flow is investigated using the Bond and Meghir (1994a) Euler …

Persistent link: https://www.econbiz.de/10011090481

Dynamic Investment Behavior Taking into Account Ageing of the Capital Good

Kort, Peter; Feichtinger, G.; Hartl, R.F.; Veliov, V. - Tilburg University, Center for Economic Research - 2001

zero.Comparing the returns of investment in capital goods of different age, the higher productivity of younger capital … feature for the firm's investment policies are investigated in an optimal control problem with distributed parameters.It turns … out that investing in capital goods of di¤erent age is done such that the net present value of marginal investment equals …

Persistent link: https://www.econbiz.de/10011090492

Real Options in an Aymmetric Duopoly : Who Benefits from your Competitive Disadvantage

Kort, Peter; Pawlina, G. - Tilburg University, Center for Economic Research - 2001

This paper considers the impact of investment cost asymmetry on the value and optimal real option exercise strategies … the level of asymmetry, a marginal increase in the investment cost of the firm with the cost disadvantage can increase … socially less desirable outcome than if one of the competitors has a significant investment cost disadvantage.Finally, we prove …

Persistent link: https://www.econbiz.de/10011090519