The effect of uncertainty on investment timing in a real options model

DOI10.1016/j.jedc.2006.07.002zbMath1163.91427OpenAlexW2030639196MaRDI QIDQ1027355

Kit Pong Wong

Publication date: 1 July 2009

Published in: Journal of Economic Dynamics \& Control (Search for Journal in Brave)

Full work available at URL: http://hdl.handle.net/10722/85675

zbMATH Keywords

uncertaintyreal optionsinvestment timing

Mathematics Subject Classification ID

Related Items (20)

Uncertain dynamics, correlation effects, and robust investment decisions ⋮ Uncertainty and the trade-off between scale and flexibility in investment ⋮ Finite project life and uncertainty effects on investment ⋮ Dynamic investment and capital structure under manager-shareholder conflict ⋮ Implications of more precise information for technological development and economic welfare ⋮ On the investment-uncertainty relationship in a real option model with stochastic volatility ⋮ Good timing: the economics of optimal stopping ⋮ Optimal R\&D investment for a risk-averse entrepreneur ⋮ Real options with unknown-date events ⋮ Optimal capital accumulation under price uncertainty and costly reversibility ⋮ Technological advances and the decision to invest ⋮ The interaction of debt financing, cash grants and the optimal investment policy under uncertainty ⋮ Irreversible investment and discounting: an arbitrage pricing approach ⋮ On the neutrality of debt in investment intensity ⋮ THE EFFECTS OF ABANDONMENT OPTIONS ON INVESTMENT TIMING AND INTENSITY ⋮ Timing and eco(nomic) efficiency of climate-friendly investments in supply chains ⋮ Is corporate control effective when managers face investment timing decisions in incomplete markets? ⋮ Structural estimation of real options models ⋮ Investment timing, asymmetric information, and audit structure: a real options framework ⋮ Devaluating projects and the investment-uncertainty relationship

Cites Work

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• Super contact and related optimality conditions
• On the investment-uncertainty relationship in a real options model
• Smooth pasting as rate of return equalization
• An Intertemporal Capital Asset Pricing Model

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