We study a buyer's optimal investment strategy for new technologies when costs evolve stochastically and are private … leads to delays in investment compared to the real option benchmark. We also suggest a payment structure that implements the … buyer's optimal investment timing as a Vickrey-type auction …

This paper addresses the issue of how regulatory constraints affect firm s investment choices when the firm has an … 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 a pure price cap and profit sharing are identical in their impact on investment …

base, we distinguish between price-based regulation and cost-based regulation. Under cost-based regulation, investment … triggers a change of regulated prices, whereas, under price-based regulation, investment does not affect them. To motivate …. Our main conclusion is that cost-based regulation accelerates investment compared to price-based regulation. …

.e. Net Neutrality regulation, will be more network users, more investment, and welfare is higher. If profit …-maximizing platform cannot charge buyers there will be more investment than without the regulation. If on top of not charging buyers …This paper studies, using a two-sided market framework, the impact of regulation on platform's pricing scheme, on …

This paper investigates a regulated company's capacity choices for a two-stage investment opportunity with growth … options, if the company faces a cost-based regulation. It uses a theoretical approach: A discrete-time mathematical model … specific investment behavior can be observed: Companies will first invest a small capacity in order to enter the market, but …

This paper addresses the issue of how regulatory constraints affect firm's investment choices when the firm has an … 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 a pure price cap and profit sharing are identical in their impact on investment …

We study the effect of observability on the noncontractible investment of a regulated firm with private marginal cost … information. We show that the observability reduces investment, pointing to the regulated firm's prevention of ratcheting. This … result, which is in line with an earlier finding of Tirole (1986) obtained in a bargaining model of procurement with two …

We study the effects of federal purchases on firm investment using a novel panel dataset that combines federal … procurement contracts in the United States with key financial firm-level information. Using panel fixed-effect models, propensity … firms’ capital investment by 10 to 13 cents. In line with the financial accelerator model, our findings indicate that the …