When a monopolist has discretion over the timing of infrastructure investments, regulation of post-investment prices … interferes with incentivizing socially optimal investment timing. In a model of regulated lumpy investment under uncertainty, we … study regulation when the regulator can condition price caps on investment timing. We analyse optimal regulation when there …

marginal social cost functions determine whether a price-based or quantity-based environmental regulation leads to higher … expected social welfare. We revisit the choice between price-based vs. quantity-based environmental regulation under Knightian … uncertainty; that is, when uncertainty cannot be modeled with known probability distributions. Under these circumstances, the …

The socioeconomic impact of pollution naturally comes with uncertainty due to, e.g., current new technological … scenario will be realised and the scientific debate is still open. This paper captures those two layers of uncertainty by …

cost of restoration and uncertainty about irreversibility. All of the results to this point are for models with just two … introduce relevant dynamic elements to the general problem of decisions under uncertainty. We analyze actions that may have … essential to establish the direction of the bias. We also use Epstein's framework to look at issues such as uncertainty about …

This paper examines the effects of uncertainty and flexible labour contracts on the Research and Development (R …&D outlays. Moreover, as predicted by the real options theory, our results suggest that product market uncertainty reduces R …&D efforts and that flexible labour contracts countervail the adverse effect of uncertainty on R&D. …

robust impact of asset irreversibility on the investment-uncertainty relationship as we analyze several competing channels …This paper examines how industry-specific uncertainty affects firms' investments for varying degrees of asset … irreversibility (i.e. the wedge between purchase price and liquidation value of an asset). To identify more or less irreversible …

The levels of uncertainty surrounding construction projects are particularly high and construction managers should be … aware that adequately managing the effects of the different types of uncertainty may lead to an increase in the overall … performance of construction companies. The model proposed focus on the impact that a specific type of uncertainty - volume …

are technology adoption or market entry. Firms either invest immediately or wait until market uncertainty is resolved. Two …