This Paper examines irreversible investment in a project with uncertain returns, when there is an advantage to being the first to invest, and externalities to investing when others also do so. Pre-emption decreases and may even eliminate the option values created by irreversibility and...

This Paper considers the 'failing firm defence'. Under this principle, found in most antitrust jurisdictions, a merger that would otherwise be blocked due to its adverse effect on competition is permitted when the firm to be acquired is a failing firm, and an alternative, less detrimental merger...

This paper examines the relationship between countries' propensity to emit chlorofluorocarbons (CFCs) and income per capita. The main part of the analysis uses dynamic estimation methods on a panel of CFC production. In contrast to static analyses, we find statistically significant quadratic...

This paper examines the irreversible adoption of a technology whose returns are uncertain, when there is an advantage to being the first adopter, but a network advantage to adopting when others also adopt. There are two main results. First, conditional on adoption being sequential, the follower...