The real options tradition originally predicted a decreasing relationship between uncertainty and investment, through … the positive effect of higher uncertainty on the trigger level for revenue relative to costs. An opposing effect on the … probability is not the best measure of investment. The sign of the total effect is again ambiguous. This ambiguity is illustrated …

reverting processes are rarely used in investment models in the literature. In most models, geometric Brownian motion processes … investigations of aggregate industry investment …

certainty and uncertainty. Prior to stopping, the expected rate of return from delay exceeds the rate of interest. The expected … uncertainty. …

We derive a new equation for the optimal investment boundary of a general irreversible investment problem under … exponential Lévy uncertainty. The problem is set as an infinite time-horizon, two-dimensional degenerate singular stochastic … the Wiener-Hopf factorization allow us to derive an integral equation for the optimal investment boundary. In case the …

returns than needed to secure investment, even when taking the uncertainties involved into account. The results obtained can …

This paper revisits the important result of the real options approach to investment under uncertainty, which states … that increased uncertainty raises the value of waiting and thus decelerates investment.Typically in this literature … that investment projects are usually considered to have a .nite life.The present paper studies investment projects with …

In the literature investigating the impact of uncertainty on short-run and long-run investment, most authors have used … general ones and has the advantage of providing closed form solutions for both short-run investment rule and long-run rate of …

In the literature investigating the impact of uncertainty on short-run and long-run investment, most authors have used … general ones and has the advantage of providing closed form solutions for both short-run investment rule and long-run rate of …

This paper analyzes the behavior of a firm that chooses both the scale and timing of its investment. Sensitivity … is in contrast to the conventional wisdom, which is that greater volatility leads to investment in smaller increments … investment is a decreasing function of demand volatility. The timing and scale of investment are most sensitive to volatility …