This paper considers investment problems in real options with non-homogeneous two-factor uncertainty. We derive some analytical properties of the resulting optimal stopping problem and present a finite difference algorithm to approximate the firm’s value function and optimal exercise boundary....

This paper analyses the Norwegian Power System through a sequence of models that represents dynamics of the wholesale power market, distribution power network, end-users, and a coordination scheme between Transmission System Operators (TSOs) and Distribution System Operators (DSOs). The models...