This paper considers the impact of investment cost asymmetry on the value and optimal real option exercise strategies … the level of asymmetry, a marginal increase in the investment cost of the firm with the cost disadvantage can increase … socially less desirable outcome than if one of the competitors has a significant investment cost disadvantage.Finally, we prove …

) investment cost, which is, for instance, caused by a reduction in the investment tax credit.The firm has an incomplete … economic environment on the investment decision of the firm.We propose a method to model the impact of a policy change on … investment behavior in which, contrary to the earlier models based on Poisson processes, uncertainty concerning the moment of the …

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 …

For decision makers the variability in the net present value (NPV) of an investment project is an indication of the … about the stochastic character of the inputs. For large, longterm investment projects (such as energy infrastructures …