We study a two-stage R&D project with an abandonment option. Two types of uncertainty influence the decision to start R …&D. Demand uncertainty is modelled as a lottery between a proportional increase and decrease in demand. Technical uncertainty is … modelled as a lottery between a decrease and increase in the cost to continue R&D. We relate differences in uncertainty to …

their risk aversion parameter invest less in risky assets than wealthy investors with identical risk aversion uncertainty. …

In this paper we perform a meta-analysis on empirical estimates of the impact between investment and uncertainty. Since … transformed into marginal effects, in order to represent the changes in the probability of finding a negative significant … can explain to a large extent why empirical estimates of the investment-uncertainty relationship differ. …

This paper distinguishes uncertainty types that differ continuously with respect to the degree to which uncertainty … uncertainty types can lead to quite special results. Monopoly examples of the newsboy problem type are further used to show that … depends crucially on the type of uncertainty and the employed functional forms for utilities and costs. …

We propose a novel and numerically efficient quantification approach to forecast uncertainty of the real price of oil …-varying forecast uncertainty and risk for the real price of oil over the period 1974-2018. We show that the combination approach …