This paper examines the effect of competition on the irreversible investment decisions under uncertainty as a … investment opportunity which is completely irreversible and the product market reveals an inverted U-shape relationship between …

plant size and the optimal investment threshold, in a context where exchange of energy among prosumers is possible. The … selling energy between prosumers, via the Smart Grid, increases investment values. This opportunity encourages prosumers to … optimal size and (optimal) investment timing. The effect of uncertainty is in line with the literature, showing increasing …

In this article, we analyse the optimal investment decision in a new health care technology of a representative … level of the care provided, but the investment is irreversible. The article uses the framework of the real option literature … to show how the purchasing rules might influence the level of investment. We show that the investment in new technology …

We analyze the optimal investment strategy of a monopolist which has subscribed a concession contract to provide a … investment and the capacity. We focus not only on the value of the immediate investment, but rather on the value of the … investment opportunity. We then extend the model to two interdependent projects, where investing in the first project provides …

licencees do not face the obligation to to develop the lease or to undertake the investment required to use the assigned … "use or lose" provisions upon the private time of investment. We find that these provisions may either increase or reduce … the probability of early investment, depending on the risk of losing the licence and the expectations about on …

's investment of endogenous size. Using a real option approach in continuous time, we show that profit sharing does not affect a … total investment. We also evaluate the reduction in the firm's value due to profit sharing, linking this reduction to the …