‘Ricardo Barcelona addresses the thornier issues of energy strategy. In this book he moves from the certainties assured by financial modelling to explore the tough questions that astute practitioners ask themselves - why do things never turn out as they were projected? Is energy strategy...

We analyze several exotic options of American style in a multiple prior setting and study the optimal exercise strategy from the perspective of an ambiguity averse buyer in a discrete time model of Cox-Ross-Rubinstein style. The multiple prior model relaxes the assumption of a known distribution...

In a recent article, Lyon and Rasmusen (2004) argue that buyer-option contracts are more effective at solving the holdup problem than has been previously recognized. This article examines the robustness of that claim to changes in the bargaining game they analyze and to changes in the nature of...

We study how firm ambiguity---Knightian uncertainty---affects investor trading behavior using the options market as a laboratory. Greater ambiguity in the underlying asset negatively relates to both options open interest and options trading volume. The reduction in options trading activity is...