Abstract: This paper considers investment decisions within an uncertain dynamic and competitive framework. Each investment decision involves to determine the timing and the capacity level. In this way we extend the main bulk of the real options theory where the capacity level is given. We...

This paper considers investment decisions within an uncertain dynamic and competitive framework. Each investment decision involves to determine the timing and the capacity level. In this way we extend the main bulk of the real options theory where the capacity level is given. We consider a...

This paper discusses environmental policy instruments in a differential-game model of international trade with oligopolistic competition. Strategic interactions occur if firms use feedback strategies and therefore react on decisions of their competitor. Eventually this harms firm profits,...