The bulk of the global innovative effort takes place in 5 countries: USA, Japan and China as leaders, with France and United Kingdom as immediate followers, which all display, on the long run, a negative marginal value added on innovation. The present paper attempts to answer the following...

Despite widespread application of real options theory in the literature, the extent to which firms actually delay irreversible investments following an increase in the uncertainty of their environment is not empirically well-known. This paper estimates firms' responsiveness to changes in...

Using a unique dataset of insurance decisions by over 1,800 large U.S. corporations, this study provides the first empirical analysis of firm behavior that compares corporate demand for property and catastrophe insurance (here, terrorism). We combine demand and supply data and apply a...

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This paper examines the production decision of the competitive firm under uncertainty when the firm is not only risk averse but also regret averse. Regret-averse preferences are characterized by a modified utility function that includes disutility from having chosen ex-post suboptimal...

We analyse the decision of an agent to invest in new industrial activities the con- sequences of which on people's health and the environment are initially unknown. The agent does not have the possibility of delaying her/his investment but s/he gets the opportunity to acquire information in...

We analyse the decision of an agent to invest and engage in industrial activities that are characterized by two forms of uncertainty: market size uncertainty and competitive effect uncertainty. We apply our model on the bioenergy industries. We compare the case of an ambiguity neutral agent with...

We analyse the decision of an agent to invest in industrial activities characterized by two forms of uncertainty: market size uncertainty and price uncertainty. We use bioenergy industries for an application of the model. Indeed, the sector is confronted to both, an uncertainty in relation to...

This paper examines the behavior of a competitive exporting firm under joint price and exchange rate uncertainty. We show that the firm's optimal production and hedging decisions depend crucially on the degree of forward market incompleteness, and on the correlation structure of the price and...