We study the role of competition for the hold-up problem in foreign direct investment in resource-based industries. The … host country government is not only unable to commit not to expropriate investment ex post, but is also unable to commit to … higher investment levels and increases host country revenues, but hurts profits of international investors …

delivery is of value even when relation-specific investment is purely cooperative. In particular, there is a range of parameter … values in which a higher investment can be implemented only if a formal fixed-price contract is written and combined with an … negative, i.e., the relation-specific investment decreases the surplus under no trade. This possibility, although very …

nature of investment, writing a simple fixed-price contract can be valuable under repeated transactions: There is a range of … parameter values in which a higher investment can be implemented only if a formal price contract is written and combined with a … relational contract increases the total surplus of the buyer and the seller. The key condition is how the investment affects the …

firms' investment decisions. We characterize the conditions under which fire sales occur in equilibrium and their … consequences on firms' investment decisions. We also show that endogenous financial crises may arise in this environment, with …

The real option theory provides a useful tool to evaluate an R&D investment under uncertainty because, unlike the NPV … (Net Present Value), it considers the managerial flexibility that may be expand the investment opportunity value. However …, most R&D investment projects are open to competing firms in the same industry or line of business, and so the strategic …

migration choice that assumes that the decision to migrate can be described as an irreversible investment decision. In our model …

rationing on start-up investment decisions …