This paper studies R&D investment decisions of a firm facing the threat of new technology entry and subject to technical uncertainty. We distinguish four scenarios: inevitable entry, entry deterrence, entry blockade, and non-credible entry threat. The entry threat stimulates the incumbent to...

This paper studies R&D investment decisions of a firm facing the threat of new technology entry and subject to technical uncertainty. We distinguish four scenarios: inevitable entry, entry deterrence, entry blockade, and non-credible entry threat. The entry threat stimulates the incumbent to...

This paper studies a dynamic duopoly in which firms compete in the adoption of new technologies. The innovation process is exogenous to the firms. Both firms have the possibility to adopt a current technology or to wait for a better technology that arrives at an unknown point of time in the...

Due to the deployment of distributed renewable energy sources (e.g., solar), the introduction of communication technologies, and the digitalization of the power system (e.g., smart meters, control devices), energy consumers are switching from passive to active in the management of their energy...

Real options models consider an investment project where the economic environment is uncertain. The uncertainty is integrated through stochastic processes to model the evolution of underlying variables that determine the value of an investment opportunity. Establishing the uniqueness of the...