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We study the development of a duopoly industry -evolution of firm capacities and competitive behavior- in a continuous-time real-options model of capacity investment. Our methodology allows the evaluation of investment options and exercise rules in a strategic setup. In the initial industry...
Persistent link: https://www.econbiz.de/10005100881
We study a simple duopoly model of preemption with multiple investments and instantaneous Bertrand competition in a stochastically growing market. Different patterns of equilibria may arise, depending on the importance of the real option effect. If the average growth rate of the market is close...
Persistent link: https://www.econbiz.de/10005100883
infer causation from education to smoking and find strong evidence that education, whether it be measured in years of …, more particularly the probability of smoking regularly. Interestingly, however, while we find that more education … substantially increases the probability of never smoking, our other main finding is suggestive that increased education has a …
Persistent link: https://www.econbiz.de/10005100687
individuals with low levels of education, and to situate it in the context of the evolution in the value of a high school diploma … over the 1981-1996 period, conditional on not pursuing post-secondary education. To do so I make use of Statistics Canada … whether the value of holding a high school diploma (excluding the option value of pursuing post-secondary education) has …
Persistent link: https://www.econbiz.de/10005100776
We study the links between observability and flexible technological choices in a duopolistic market. We show that, in large markets, the strategic value of flexibility is positive and observability of technological choices promotes the adoption of more flexible technologies whereas in small...
Persistent link: https://www.econbiz.de/10005100679