examines the impact of profit uncertainty and sunk costs on firms’ entry and exit decisions. For our empirical analysis, we … sunk capital costs and profit uncertainty, among others. Our dynamic panel data estimates show that greater uncertainty … uncertainty in conjunction with sunk costs fundamentally affecting firms’ decision-making and altering the structure of industries …

exploitation of non‐renewable resource markets; (iii) uncertainty, irreversible investments, and option values; and (iv) economic …

production period the firm makes its order, production and pricing choices under successively reduced uncertainty. The model … good state of nature. Further, we investigate situations of greater uncertainty and find a more nuanced explanation of firm … either raise or reduce its order size depending on the demand elasticity and the relative demand uncertainty. Intuitively …

choice deviate from what citizens want but that an increase in uncertainty about policy outcomes decreases this distortion. …