), Episcopos (1995), and Abel et al. (1996), suggest an important linkage between the effect of uncertainty on investment and the … of investment irreversibility. A simple empirical illustration is provided by using pooled annual data for 12 OECD …

The empirical literature of investment under uncertainty has vastly neglected to account for the role played by market … structure. Recently the theory has however started to merge real options theory with game theory to offer alternative … explanations to strategic investment behaviour. This paper estimates an error correction model of investment under product price …