Balmann, Alfons; Kataria, Karin; Musshoff, Oliver - In: Journal of Mathematical Finance 3 (2013) 2A, pp. 1-10
This paper shows how agent-based stochastic approaches can provide a complementary and more flexible approach to study investment incentives and price dynamics in a real options framework. We particularly study the case of two-stage production chains in which one sector produces an intermediate...