This paper considers the problem of investment timing under uncertainty in a duopoly framework.When both firms want to …

We consider a firm's decision to replace an existing production technology with a new, more cost-efficient one … which adds flexibility in timing of the investment decision.This flexibility introduces an option value of waiting which … market leader due to a lower marginal cost, more uncertainty always increases the expected time to invest.Furthermore, it is …

value of a high cost firm can increase in its own cost.Furthermore, it is established to what extent investments are delayed …