The impact of operational delay on irreversible investment under Knightian uncertainty

DOI10.1016/J.ECONLET.2022.110494MaRDI QIDQ2158373zbMATH OpenOpenAlexFDO

Authors Laura Delaney

Publication date 26 July 2022

Published in Economics Letters (Search for Journal in Brave)

Full work available at URL https://doi.org/10.1016/j.econlet.2022.110494

zbMATH Keywords

irreversible investmentKnightian uncertaintyoperational delay

Mathematics Subject Classification ID

Corporate finance (dividends, real options, etc.) (91G50)

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Cites work

• A model of capacity choice under Knightian uncertainty
• Costly sequential experimentation and project valuation with an application to health technology assessment
• Developing real option game models
• Implementation lag and the investment decision
• Incomplete markets, ambiguity, and irreversible investment
• Irreversible investment and Knightian uncertainty
• Learning Under Ambiguity
• Maxmin expected utility with non-unique prior
• OPTIMAL STOPPING WITH DELAYED INFORMATION
• Risk, uncertainty, and option exercise
• Search and Knightian uncertainty
• The impact of delivery lags on irreversible investment under uncertainty
• The worst case for real options
• Uncertainty and Lags in the Investment Decisions of Firms

Cited in

(7)

• Implementation lag and the investment decision
• Irreversible investment and Knightian uncertainty
• The impact of delivery lags on irreversible investment under uncertainty
• Cash holdings, ambiguity aversion, and investment puzzles
• Dynamic investment strategies for a folk sports tourism destination under uncertain demand
• A sequential stopping problem with costly reversibility
• The impact of investment lags on investment decision

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