Thijssen, Jacco; Huisman, Kuno; Kort, Peter - In: Economic Theory 28 (2006) 2, pp. 399-424
The paper analyses the influence of uncertainty and competition on the strategic considerations of a firm’s investment decision, where the firm receives imperfect signals about the profitability of an investment project. We find a preemptive or an attrition equilibrium depending on a trade-off...