This paper considers the impact of investment cost asymmetry on the value and optimal real option exercise strategies … the level of asymmetry, a marginal increase in the investment cost of the firm with the cost disadvantage can increase … socially less desirable outcome than if one of the competitors has a significant investment cost disadvantage.Finally, we prove …

economic environment on the investment decision of the firm.We propose a method to model the impact of a policy change on … investment behavior in which, contrary to the earlier models based on Poisson processes, uncertainty concerning the moment of the …) investment cost, which is, for instance, caused by a reduction in the investment tax credit.The firm has an incomplete …

which adds flexibility in timing of the investment decision.This flexibility introduces an option value of waiting which …