In this study, we analyze the investment-timing problem and introduce a model of two firms competing for investment … preemption, each of which knows in advance the time at which the economic condition that will have an impact on the investment … changes. We qualitatively show how two firms strategically optimize their investment timing, taking into account competition …

We consider a real options model for the optimal irreversible investment problem of a profit maximizing company. The … two independent geometric Brownian motions. After paying a constant sunk investment cost, the company sells the products … on the market and thus receives a continuous stochastic revenue-flow. This investment problem is set as a twodimensional …

positive semi variances of returns leads to higher investment …