This paper extends the theory of irreversible investment under uncertainty to incorporate capacity constraints and uncertainty on the input price. In addition, no restriction on the demand elasticity value is imposed. Assuming input price follows a geometric Brownian motion, the optimal...

Organizations require discretionary decision making to be delegated and to be under only partial scrutiny from supervisors. This introduces the possibility for agents to use their discretionary power to their own advantage and in detriment to the organization. We model this situation by...

Consider a general equilibrium framework where the marginal cost of extraction from several deposits of an exhaustible resource is constant in terms of an inexhaustible perfect substitiute and differs between deposits. The instantaneous rate of productionfrom the inexhaustible resourcce is...

This paper presents a simple model of local telecommunications market when two access technologies, landline and wireless, are available. The two technologies differ in their cost structures and in the services they provide to consumers; specifically, the wireless technology allows its...

Dans leur ouvrage "Endogenous Growth Theory", P. Aghion et P. Howitt caracterisent les trajectoires optimales dans un modele schumpeterien ou ils introduisent explicitement des emissions de pollution qui deteriorent l'environnement. L'objectif du present article est de chercher comment ces...