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We consider a decision maker facing uncertainty which behaves as a subjective expected utility maximizer. The value of information is traditionnaly captured as a greater expected utility the decision maker can achieve by selecting a best strategy as information arrives. We deal with the limit...
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gap over the 1994-2000 period. Faster growth in capital intensity of production in the United States also played a …
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-time real-options model of capacity investment. Our methodology allows the evaluation of investment options and exercise rules … capacity units are costly, indivisible, durable, and big relative to market size, early entry cannot secure a first …-mover advantage, so that both firms are active beyond some level of market development. Once both firms hold capacity, tacit collusion …
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