We examine the possibilities of premature and postponed replacement in a deterministic infinite horizon model when there is technological progress. Both revenue and operating cost deteriorate with age, but at different rates. The optimal deterministic replacement time is an implicit solution...

By mixing concepts from both game theoretic analysis and real options theory, an investment decision in a competitive market can be seen as a “game” between firms, as firms implicitly take into account other firms’ reactions to their own investment actions. We review two decades of real...