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 the arrival of an activity relying on the implementation of …

technical uncertainty. We distinguish four scenarios: inevitable entry, entry deterrence, entry blockade, and non-credible entry … technical uncertainty stimulates starting R&D and can result in implementation of more expensive research projects. The welfare … analysis shows that the relation between welfare and entry cost and between welfare and uncertainty is nonmonotonic. …