Seeing the firm as a nexus of activities and projects, we propose a characterization of the firm where variations in the market price of risk should induce adjustments in the firm's portfolio of projects. In a setting where managers disagree with respect to what investment maximizes value,...

I characterize and discuss in this paper the challenges and pitfalls we must face to grow out for good of the recent and future financial crises and economic recessions. I propose a brief history of the last crisis and insist on the loss of confidence within the banking and financial sector,...

This paper studies the optimal growth when research and development are explicitly distinguished. To this end, we perform the quantitative welfare analysis of an original model based on (i) a matching process between research and development and (ii) a competitive search process that determines...

We model capacity-building investments in a homogeneous product duopoly facing uncertain demand growth. Capacity building is achieved through the addition of production units that are durable and lumpy and whose cost is irreversible. While building their capacity over time, firms compete à la...

After decades of liberalization of the telecommunications industry around the world and technological convergence that allows for increasing competition, sector-specific regulation of telecommunications has been on the decline. As a result, the telecommunications industry stands in the middle of...

In today’s digital age, copyright regimes everywhere face common piracy threats along with wide dissemination. Meanwhile, rights holders and users contest the market value of copyrights in public forums, legislatures and in the courts. Without agreement on value, there can be no fair copyright...

The estimation of cartel overcharges lie at the heart of antitrust policy on cartel proscution as it constitutes a basic element in the determination of fines. Connor and Lande (2008) conducted a survey of cartels and found a mean overcharge estimates in the range of 31% to 49%. By examining...

Nous avons procédé à une évaluation du projet VEGA de Northern Canada Gas (NCG) dans le but de montrer comment l'approche options réelles peut s'appliquer à ce type de projet. Bien que réaliste, cette étude est basée sur un cas fictif. Ainsi, elle se veut plutôt exploratoire quant à...

The goal of this paper is to demonstrate how the RO methodology can be applied to evaluate TransEurope Communications (TEC) investment projects. Although realistic, the business case analysed here is fictional. The main conclusion and lesson of this exercise is: One cannot determine a value...