Jou, Jyh-bang; Lee, Tan - In: Journal of Financial and Quantitative Analysis 43 (2008) 03, pp. 769-786
This paper examines a firm's debt level, investment timing, and investment scale choices in a continuous-time model where the output price of a good that the firm produces depends on a stochastic demand-shift variable and the total industry supply of the good. Using the simple symmetric...