In a continuous-time framework we study the technology and investment choice problem of a continuous co … flexible technology allowing for such option. Investment is irreversible and flexibility is costly. The problem is solved … determining in the light of future prospects the optimal revision and then playing backward fixing the investment timing rule …

's investment of endogenous size. Using a real option approach in continuous time, we show that profit sharing does not affect a … very high, however, introducing a profit sharing element delays further investments: this decreases the present value of … total investment. We also evaluate the reduction in the firm's value due to profit sharing, linking this reduction to the …

This paper applies real options theory to establish an overseas oil investment evaluation model that is based on Monte …. Furthermore, among the uncertainty factors considered in the model, the investment risk of overseas oil investment may be … windfall profits tax to reduce the investment risk of overseas oil fields. -- Overseas Oil Investment ; Project Value ; Real …

financial frictions induces the standard real-options effects on investment and hiring, but also leads firms to hoard cash …, further reducing investment and hiring. We then test the model using a panel of US firms and a novel instrumentation strategy …

This paper develops and tests a dynamic optimization model of fishermen's investment behavior in a limited … assess the ability of simple financial models to explain observed investment behavior, we develop a two-factor (price and … mechanism by which investment behavior can be linked in a real options framework to exogenous factors that affect price and …

services that other EC participants bid for. In detail, we examine whether P2P trading can increase the value of investments in … PVBs and affect the decision on both the optimal investment timing and size. Following the real options approach, we …, households accelerate investments and invest in larger plants compared to scenarios in which P2P trading in not permitted …