Aïd, René; Federico, Salvatore; Pham, Huyên; … - In: Journal of Economic Dynamics and Control 51 (2015) C, pp. 240-256
We establish explicit socially optimal rules for an irreversible investment decision with time-to-build and uncertainty. Assuming a price sensitive demand function with a random intercept, we provide comparative statics and economic interpretations for three models of demand (arithmetic...