Hysteresis due to irreversible exit: addressing the option to mothball

DOI10.1016/J.JEDC.2018.04.009zbMath1401.91579OpenAlexW2800118377WikidataQ129860316 ScholiaQ129860316MaRDI QIDQ1657608

Y. Aharonov

Publication date: 13 August 2018

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

Full work available at URL: https://doi.org/10.1016/j.jedc.2018.04.009

zbMATH Keywords

hysteresisreal optionsexitmothballing

Mathematics Subject Classification ID

Stopping times; optimal stopping problems; gambling theory (60G40) Financial applications of other theories (91G80)

Related Items (4)

Optimal investment decision under switching regimes of subsidy support ⋮ Investment in two alternative projects with multiple switches and the exit option ⋮ Rescaling-contraction with a lower cost technology when revenue declines ⋮ The effects of asset liquidity on dynamic sell-out and bankruptcy decisions

Cites Work

• How to escape a declining market: capacity investment or exit?
• Optimal investment under operational flexibility, risk aversion, and uncertainty
• Optimal timing of technology adoption
• A model for investment decisions with switching costs.
• Renewable energy investments under different support schemes: a real options approach
• Irreversible investment in alternative projects
• Optimal Switching over Multiple Regimes
• Optimal Switching in an Economic Activity under Uncertainty
• A Problem of Sequential Entry and Exit Decisions Combined with Discretionary Stopping
• A DYNAMIC MODEL OF CLEANUP: ESTIMATING SUNK COSTS IN OIL AND GAS PRODUCTION

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