informed. We study the e§ects of competition on the fear of commitment, and compare the jointly optimal adoption decision to …We examine project adoption decisions of firms constrained in the number of projects they can handle at once. Adoption … requires a commitment for a period of uncertain duration, restricting the firm in subsequent periods. Capacity constraints …

a project requires a commitment of uncertain duration, restricting the …rm from selecting another project in subsequent … periods. Due to the capacity constraints and need for commitment, some positive return projects are rejected. In a sequential …