We investigate urban spatial development assuming that landowners irreversibly develop property in an uncertain environment. Unlike the standard monocentric city model, we assume that bid rents for houses are not monotonically decreasing with the distance from the central business district (CBD)...

In Rosen's (1974) model, implicit market prices can be interpreted as the present values of rents per unit of each hedonic characteristic. But when rents rise, there may be substantial value associated with the option to redevelop to higher intensity per unit land value. In the presence of...

This study investigates the design of the royalty rate in a first-price auction across three types of investments: incremental and lumpy with or without an exogenously given intensity. A bidder's investment cost comprises private information. This, together with the stochastic evolution of the...

This paper investigates how conservative accounting system can mitigate the agency problem between the manager and shareholders of a firm, which arises from information asymmetry. In this study I assume that the firm has a privileged right to engage in an irreversible discrete project, i.e., it...