The impact of uncertainty on firms' investment outlays is subject to an ongoing debate. Theory identifies several … channels. Irreversibility, financing constraints and risk aversion make a negative relationship between uncertainty and … investment likely. On the other hand, the ability of firms to adapt after uncertainty is resolved can make a risky strategy more …

This paper experimentally investigates investment behavior.We find that global risk – i.e. risk independent of an agent …’sinvestment decision (like political risk) – substantiallydecreases investment. Also effort to obtain the capital usedfor investment … decreases investment substantially. Theseresults are neither in line with expected utility theory norwith psychologically …

Recent theoretical developments relating to investment under uncertainty have highlighted the importance of … irreversibility for the timing of investment expenditures and their expected returns. This has subsequently stimulated a growing … empirical literature which examines uncertainty and threshold effects of investment behaviour. This paper presents a review of …

This paper investigates the effects of uncertainty on the investment behaviour using firm-level data for a sample of … invested. Furthermore, the difference between reversible and irreversible investment is crucial. The impact of volatility on … irreversible investment is far more larger than on reversible investment. In some cases, the amount of reversible investment will …

seller has private information about his alternative trading opportunities. Theory predicts that, compared with a situation … these predictions, private information appears to have no impact on the investment levels observed in the experiment. A …

with risk and adverse selection, is unable to address issues related to moral hazard. Hence, instead of forcing banks to … hold a large fraction of safe assets, prohibiting some types of investment and allowing ample scope of investment on others …

goods, a symmetric risk allocation is superior as it ensures sufficient investment incentives even if competition is very … success of the NGA, I compare regulatory regimes with symmetric and with asymmetric risk allocation to the firms having the … asymmetric risk allocation not only increases the chances of cooperation but lowers the risk of overinvestment. For homogeneous …