This paper develops an agent-based real options model, which is capable of analyzing the investment and disinvestment … the model in which the firms can trade permits with each other according to their investment or disinvestment behavior for …

equilibrium model, we find that a firm increases investment in response to external product market threats. Further, the paper … analyzes whether product market threats lead to an improvement in investment efficiency. When faced with product market … competition, we find that firms that are otherwise likely to underinvest (overinvest) increase (increase) their investment …

This paper examines the impact of investment in knowledge-based capital on firm productivity. The analysis is based on … investment in knowledge-based capital which include expenditures on R&D, and on non-R&D intangible assets such as computer … and above other factors, an increase in investment in knowledge-based capital of 10 per cent increases firm productivity …