This paper generalizes the theory of irreversible investment under uncertainty by allowing for risk averse investors in … aversion to examine the e ects of risk aversion, price uncertainty, and other parameters on the optimal investment decision ….We nd that risk aversion reduces investment, particularly if the investment size is large.Moreover, we nd that a rise in …

We experimentally disentangle the effect of information feedback from the effect of investment flexibility on the … investment behavior of a myopically loss averse investor.Our findings show that varying the information condition alone suffices …

which adds flexibility in timing of the investment decision.This flexibility introduces an option value of waiting which …

-weighted approximate replication of the economic risk variables using the investment opportunity set, as opposed to the unweighted hedging …

In the strategic investment under uncertainty literature the trade off between the value of waiting known from single … effect in terms of investment thresholds is detected in the sense that an exogenous demand shock results in a change of the … wedge between the investment thresholds of the first and second investors that is qualitatively different from the change of …