Low investment rates are a puzzling phenomenon particularly in transition economies with an urgent need for … modernisation. The literature offers two alternative explanations: imperfect capital markets and investment reluctance due to real … real option effects may lead to erroneous conclusions in the context of empirical investment equations …

In this study, we experimentally analyze the investment behavior of smallholder farmers in Uganda. We consider a … options approach and the classical investment theory can predict farmers’ investment behaviors. We also examine differences in … the investment behavior with respect to the presence of a price floor, which is often used to stimulate investments …

This paper develops an agent-based real options model, which is capable of analyzing the investment and disinvestment … the model in which the firms can trade permits with each other according to their investment or disinvestment behavior for …

fact might be the different investment behavior of farmers in the two countries. We experimentally analyze whether the … investment behavior of farmers is consistent with the normative benchmarks of the net present value criterion or the real options … approach. Furthermore, we experimentally compare the investment behavior of farmers in the two countries in an agricultural and …

CLASSICAL INVESTMENT THEORY AND THE REAL OPTIONS APPROACH Abstract This study analyzes the explanatory potential of the real … compares the valuation of the ROA with that of the classical investment criterion such as the net present value (NPV). A … further objective is to analyze the sensitivity of investment triggers with respect to assumed stochastic processe... …