CLASSICAL INVESTMENT THEORY AND THE REAL OPTIONS APPROACH Abstract This study analyzes the explanatory potential of the real … compares the valuation of the ROA with that of the classical investment criterion such as the net present value (NPV). A … further objective is to analyze the sensitivity of investment triggers with respect to assumed stochastic processe... …

, uncertainty arises from weather and climatic conditions. (Dis)investment in irrigation technology on farms has become more … choose to postpone (dis)investments that appear to be immediately profitable. We combine investment and disinvestment … investment and disinvestment behavior of farmers. In our study, we consider a simple optimal stopping (dis)investment problem in …

In this study, we experimentally analyze the investment behavior of smallholder farmers in Uganda. We consider a … options approach and the classical investment theory can predict farmers’ investment behaviors. We also examine differences in … the investment behavior with respect to the presence of a price floor, which is often used to stimulate investments …

biogas production. The model implemented is based on a real option approach that includes investment irreversibility and …