In theory, uncertainty and sunk costs can influence industry dynamics through the option value and financing …. Our empirical analysis, covering 267 U.S. manufacturing industries over a 30-year period, reveals that greater uncertainty … that uncertainty and sunk costs play a crucial role. Our findings could be useful for the study of firm survival, models of …

analysis. I will be particularly concerned with the role of uncertainty. When market conditions evolve unpredictably (as they …

The empirical literature of investment under uncertainty has vastly neglected to account for the role played by market … uncertainty for 23 French industries during the period 1977-1997 and represents the first empirical work that includes variables … of market structure (in terms of degree of competition) in a model of investment under uncertainty. It is also one of the …

there is uncertainty about the marginal costs of the newly merged firms. The authors consider that the merging firms decide … always have incentives to merge, irrespective of cost uncertainty, while a merger without role redistribution is ex ante … profitable if and only if uncertainty is sufficiently great. As regards the social desirability of mergers, it is found that a …

. A key assumption is that mergers create uncertainty on productivity and informational asymmetry between firms. The paper …

values (prospective uncertainty) with feedback learning theory that considers uncertain current asset values (contemporaneous … uncertainty). This enables us to incorporate behavioral bias in the feedback learning process underlying the option execution …/termination decision. The resulting computational model suggests that firms that inappropriately account for contemporaneous uncertainty …

the uncertainty about the risks in question, and involve three trade-offs: innovation vs. risk avoidance; liability vs …