Irreversible investment in alternative projects
From MaRDI portal
Publication:2494023
DOI10.1007/s00199-005-0629-2zbMath1107.91046OpenAlexW2122281001MaRDI QIDQ2494023
Jean-Paul Décamps, Thomas Mariotti, Stéphane Villeneuve
Publication date: 16 June 2006
Published in: Economic Theory (Search for Journal in Brave)
Full work available at URL: https://doi.org/10.1007/s00199-005-0629-2
Decision theory (91B06) Stopping times; optimal stopping problems; gambling theory (60G40) Corporate finance (dividends, real options, etc.) (91G50)
Related Items
Asset retirement with infinitely repeated alternative replacements: harvest age and species choice in forestry ⋮ Dynamic bankruptcy procedure with asymmetric information between insiders and outsiders ⋮ Hysteresis due to irreversible exit: addressing the option to mothball ⋮ Real options analysis of investment in carbon capture and sequestration technology ⋮ A real options approach for joint overhaul and replacement strategies with mean reverting prices ⋮ Renewable energy investments under different support schemes: a real options approach ⋮ Capacity switching options under rivalry and uncertainty ⋮ Strategic investment under uncertainty in a triopoly market: timing and capacity choice ⋮ Investment in two alternative projects with multiple switches and the exit option ⋮ On the smoothness of value functions and the existence of optimal strategies in diffusion models ⋮ Optimal procurement and investment in new technologies under uncertainty ⋮ Optimal investment under operational flexibility, risk aversion, and uncertainty ⋮ Optimal learning before choice ⋮ Rivalry and uncertainty in complementary investments with dynamic market sharing ⋮ Rescaling-contraction with a lower cost technology when revenue declines ⋮ Optimal dividend policy and growth option ⋮ Managing risks from climate impacted hazards -- the value of investment flexibility under uncertainty ⋮ Strategic technology switching under risk aversion and uncertainty ⋮ Capacity choice under uncertainty in a duopoly with endogenous exit ⋮ Optimal regime switching under risk aversion and uncertainty ⋮ When and how much to invest? Investment and capacity choice under product life cycle uncertainty ⋮ Investment timing and optimal capacity choice for small hydropower projects ⋮ Learning and collusion in new markets with uncertain entry costs ⋮ Hybrid or electric vehicles? A real options perspective ⋮ Technology choice under several uncertainty sources ⋮ On the convergence from discrete to continuous time in an optimal stopping problem. ⋮ On Threshold Strategies and the Smooth-Fit Principle for Optimal Stopping Problems ⋮ Reputation effects in stochastic games with two long-lived players ⋮ A duopoly preemption game with two alternative stochastic investment choices ⋮ Uncertainty and stepwise investment ⋮ Liquidation, fire sales, and acquirers' private information ⋮ When is it better to wait for a new version? Optimal replacement of an emerging technology under uncertainty
