We present a model of firm investment under uncertainty and partial irreversibility in which uncertainty is represented … impact the optimal investment and disinvestment policies, and how the presence oflarge negative jumps can drastically affect … negative effect of uncertainty on firm investment decisions. We test these predictions on a panel dataset of UK firms: we first …

for further research, especially on the motivations behind investment decisions. Investments in market economies are …) and the General Theory (1936), as well as follow-ups in the postKeynesian approaches and others dealing with “fundamental … society. By shaping business concerns and strategies, social institutions have a major impact on investment decisions in a …

on a robust investment problem and identify how the robustness multiplier can be numerically interpreted by ascribing …

We report laboratory experiments investigating the cyclicality of profit-enhancing investment in a competitive … environment. In our setting, optimal investment is counter-cyclical when investment costs fall following market downturns. However …, we do not observe counter-cyclical investment. Instead we see much less strategic behavior than our rational investment …

development. These activities often include relationship-specific investment on the part of the vendor, while final outcomes can …, especially when relationship- specific investment is required, may leave the supplier vulnerable to a version of the ‘‘hold …-up problem,'' which is known to result in sub-optimal levels of investment. We model the phenomenon as a sequential move game …

We derive a new equation for the optimal investment boundary of a general irreversible investment problem under … the Wiener-Hopf factorization allow us to derive an integral equation for the optimal investment boundary. In case the … underlying Lévy process hits any point in R with positive probability we show that the integral equation for the investment …