This paper addresses the issue of how regulatory constraints affect firm's investment choices when the firm has the … option to delay investment. The RPI-x rule is compared to a profit sharing rule, which increases the x factor in case profits … go beyond a given level. It is shown that these rules are identical in their impact on investment choices, in that the …

This paper studies the aggregate implications of microeconomic investment irreversibility and idiosyncratic uncertainty …

In this paper we analyse a dynamic model of investment under uncertainty in a duopoly, in which each firm has an option …. A simulation-based numerical example illustrates the model and shows the relative likelihoods of investment taking place …