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 …

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 …

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 …

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 …

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 … zero.Comparing the returns of investment in capital goods of different age, the higher productivity of younger capital …

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 …