This paper studies R&D investment decisions of a firm facing the threat of new technology entry and subject to …

We analyze the impact of progressive taxation on irreversible investment under uncertainty. We show that if tax … exemption is lower than sunk cost, higher tax rate will decelerate optimal investment by increasing the optimal investment … investment threshold is a positive function of volatility, but independent of tax rate. For "medium" volatilities it is …

This paper studies R&D investment decisions of a firm facing the threat of new technology entry and subject to …

In a continuous-time framework we study the technology and investment choice problem of a continuous co … flexible technology allowing for such option. Investment is irreversible and flexibility is costly. The problem is solved … determining in the light of future prospects the optimal revision and then playing backward fixing the investment timing rule …

The paper studies the interaction between cyclical uncertainty and investment in a stochastic real option framework … of the link between cyclical uncertainty and investment is quantified using simulations of the model. The chief …