This paper considers investment decisions within an uncertain dynamic and competitive framework. Each investment … economic environments the first investor always ends up being the largest firm in the market. If uncertainty is moderately …

building up abatement capital stock, we examine the effect of a higher pollution tax rate on abatement investment both under … encourages abatement investment only if it does not exceed a certain threshold rate - a "Laffer-curve" phenomenon. When the size … of the tax increase is uncertain, at the time of the tax increase the abatement investment path may shift upward or …

that the effect of magnitude uncertainty on the optimal investment path may be more pronounced than that of timing … building up abatement capital stock, we examine the effect of a higher pollution tax rate on abatement investment both under … encourages abatement investment if it does not exceed a certain threshold rate. However, akin to Diamond-Mirrless' tax anomaly …

investment with vintage capital, namely, systems where all key variables (capitals, investments, prices) are indexed not only by … this general context. In particular, for optimal investment with vintage capital, existence and uniqueness of a long run … equilibrium distribution is proved for general concave revenues and convex investment costs, and analytic formulas are obtained …

building up abatement capital stock, we examine the effect of a higher pollution tax rate on abatement investment both under … encourages abatement investment if it does not exceed a certain threshold rate - a "Laffer-curve" phenomenon. When the size of … the tax increase is uncertain, at the time of the tax increase the abatement investment path may shift upward or downward …

This paper considers investment problems in real options with non-homogeneous two-factor uncertainty. It shows that … straightforwardly extended to problems with two stochastic processes. To illustrate, we analyze an investment problem with two … stochastic revenue streams and a constant sunk cost. We show that a semi-analytical approach leads to a sub-optimal investment …