Water resource management can be a complex, uncertain and conflictual domain. It faces numerous problems in many regions of the world, such as the disparity of interests associated with the water resource, multiple decision makers, complex networks of administration, inoperative water...

This paper studies investments in new markets where more than two (anticipated) identical competitors are present. In case of three firms an accordion effect is detected: an exogenous demand shock results in a change of the wedge between investment thresholds of the first and second investor...

Despite a large body of literature on the topic, empirical tests of real option models are scarce. The lack of data offers an initial explanation for this. However other intrinsic reasons could well explain why real options are difficult to test on large-scale studies. We show that the use of...

Despite a large body of literature on the topic and the continuously improving understanding of professionals, real options are not widely used to value firms. Numerous assumptions have been raised to explain the various obstacles to their adoption. Limits concerning the relevance of option...

We study a class of symmetric strategic experimentation games. Each of two players faces an (exponential) two-armed bandit problem, and must decide when to stop experimenting with the risky arm. The equilibrium amount of experimentation depends on the degree to which experimentation outcomes are...

This paper applies real options and mean–variance portfolio theories to analyze the electricity generation planning into presence of nuclear power plant for the Tunisian case. First, we analyze the choice between fossil fuel and nuclear production. A dynamic model is presented to illustrate...

This review article describes the main contributions in the literature on term structure models of commodity prices. The first section is devoted to the theoretical analysis of the term structure. It confines itself primarily to the traditional theories of commodity prices and to their...

Recently, the concept of real options had raised in popularity among scholars. Although, real options allow to analyze measure and value uncertainty which are critical steps in decision making, real options are scarcely used in practice. The complexity of the concept is one of the main reasons...

We investigate how labor and investment demand at the firm level (gross as well as net and replacement investment separately) differs in French, German and U.S. manufacturing, and has changed since the 1974–75 crisis. We use three consistent panel data samples of large firms for 1970–79, and...