Kotseva, Rossitsa; Vettas, Nikolaos - C.E.P.R. Discussion Papers - 2005
demand uncertainty. We allow for demand shocks that, while increasing expected profit, impede learning. The firm learns …, examine how they depend on the technology parameters and the structure of uncertainty and show that learning alone may explain … the S-shape of these paths. Immediate investment is possible despite the presence of demand uncertainty, if there are …