This paper examines the equilibrium adoption patch for two innovations when there are "network externalities". We show that the existence of significant increasing returns in system-scale can give the result that one variant will drive out the other one and so emerges as the unique standard for...

We consider the possibility of switching between two technological standards when there are network externalities and imprecise market information. Multiple equilibria in terms of market shares can arise. The main result is that lock-in to one of multiple equilibria is not a permanent out- come...

This paper developes an evolutionary model to discus the issue of efficiency in non-profit organisations. The ideological commitment that characterizes most of them is depicted through the introduction of a role for moral and social norms. It comes out that attracting motivated employees can be...

A bank closure policy problem is analysed in a mathematical model within a Black-Scholes framework where an appropriate notion of capital adequacy is introduced. The value of the deposit insurance liabilities and bank equity are derived. The effects of capital requirements on risk-shifting and...

This paper adopts a promising concept of uncertainty, incorporating both stochastic processes and fuzzy theory to capture the somewhat vague and imprecise ideas the manager has about the future expected cash flows, the profitability of the project, the costs of the project and many other...

The vague notion of "probabilistic patents" is formalized through a model which combines real option theory and a fuzzy methodology. The imprecise estimates the patent holder possesses about her future profits, the validity and scope of the patent, the litigation costs, the court's decision etc....

The effects of two environmental policy options for the reduction of pollution emissions, i.e. taxes and non-tradable quotas, are analyzed. In contrast to the prior literature this work endogenously takes into account the level of emissions before and after the adoption of the new environmental...

We develop a model on the optimal timing of switching from non-renewable to renewable energy sources with endogenous extraction choices under emission taxes and abatement costs. We assume that non-renewable resources are "dirty" inputs and create environmental degradation, while renewable...

This paper addresses the following unresolved questions: Why do some firms issue equity instead of debt? Why did most firms retain their cash holdings instead of distributing them as dividends in recent times? How do firms change their financing policies during a period of severe financial...

We develop a dynamic investment options framework with optimal capital structure and analyze the effect of debt maturity. We find that in the absence of financing constraints short-term debt maximizes firm value. In contrast with most literature results, in the absence of constraints, higher...