This paper investigates technology adoption of a single firm in a continuous time model with an infinite planning horizon and an infinite number of investment opportunities. Technological progress is exogenous and modeled either by a poisson process or a geometric poisson process. For both...

We study own and rival risk in a dynamic duopoly with a homogeneous output good. A competitor's options to adjust capacity reduce own-firm risk through a simple hedging channel. For example, if a rival possesses a growth option, an increase in industry demand directly enhances current profits...

A dynamic structural-empirical model is developed in order to estimate the size of the learning spillover within the world photovoltaic (PV) cell industry. We extend the approach of Benkard (American Economic Review 2000) on industry level, so that the spillover appears across firms within the...