Tselekounis, Markos; Varoutas, Dimitris - 2016
of the investments, with the complementary probability. It is found that when the slope of the marginal investment cost … the socially optimal investment level. On the contrary, in a more realistic case when the impact of investments on demand … is low in relation to the slope of the marginal investment cost function, the incumbent may overinvest or underinvest …