We examine project adoption decisions of firms constrained in the number of projects they can handle at once. Adoption requires a commitment for a period of uncertain duration, restricting the firm in subsequent periods. Capacity constraints create a “fear of commitment” — some positive...

We examine project adoption decisions of firms constrained in the number of projects they can handle at once. Adoption requires a commitment for a period of uncertain duration, restricting the firm in subsequent periods. Capacity constraints create a “fear of commitment” — some positive...

We examine project selection decisions of …rms constrained in the number of projects they can handle at once. Taking on a project requires a commitment of uncertain duration, restricting the …rm from selecting another project in subsequent periods. Due to the capacity constraints and need for...