Alvarez, Luis H.R.; Lempa, Jukka; Oikarinen, Elias - Turun Kauppakorkeakoulu, Turun Yliopisto - 2009
We consider how the inter-temporal discreteness of the revenue and cost processes affect the optimal timing of a real estate investment opportunity in comparison with the investment timing strategy obtained by relying on the traditional continuous real option model. We characterize both optimal...