Saphores, Jean-Daniel; Gravel, Éric; Bernard, Jean-Thomas - Groupe de recherche en économie de l'énergie, de … - 2003
We consider a firm that must undergo a costly and time-consuming regulatory process before making an irreversible, lagged investment whose value varies randomly. We analyze two cases: regulatory approval is valid forever or it expires after some time. We apply our model to Hydro-Québec's...
