An irreversible investment problem with a learning|by|doing feature

An irreversible investment problem with a learning-by-doing feature

We study a model of irreversible investment for a decision-maker who has the possibility to gradually invest in a project with unknown value.

an irreversible investment problem with a learning-by-doing feature

More specifically, we introduce and study a notion of learning-by-doing: by investing more into the project (i.e., by doing) the decision-maker ...

An irreversible investment problem with a learning-by-doing feature

Request PDF | An irreversible investment problem with a learning-by-doing feature | We study a model of irreversible investment for a decision-maker who has ...

(PDF) Irreversible Investment in Alternative Projects - ResearchGate

References (31) · An irreversible investment problem with a learning-by-doing feature · Corporate sustainability, investment, and capital ...

A Knightian irreversible investment problem - EconStor

There, randomness enters the model through a geometric Brownian motion representing an exogenous economic shock, and the firm's profit function ...

An irreversible investment problem with demand on a finite horizon

Han and Yi [19] consider optimal irreversible investment problem with maintenance expenditure, by partial differential equation (PDE) technique, they ...

Irreversible Investment and Learning Externalities

this game, each player's investment trigger is an increasing function of his investment ... we consider the optimal investment problem of a single player with ...

On an irreversible investment problem with two-factor uncertainty

This investment problem is set as a two-dimensional optimal stopping problem. We find that the optimal investment decision is triggered by a convex curve, which ...

Explicit Solution of a Stochastic, Irreversible Investment Problem and ...

Therefore the solution of the firm's optimal profits problem (2P), if it exists, is unique. Of course, the production function. R is unbounded but Assumption ( ...

On an Irreversible Investment Problem with Two-Factor Uncertainty

This investment problem is set as a twodimensional optimal stopping problem. We find that the optimal investment decision is triggered by a convex curve, which ...

A Knightian irreversible investment problem - ScienceDirect.com

From a mathematical point of view, optimal irreversible investment problems under uncertainty can be modeled as singular stochastic control ...

Irreversibility and Aggregate Investment | MIT Economics

stock at t exists, it must be a function of Z(7) and P(7). If dG(7) >0 in ... The Bellman equation for the irreversible investment problem takes the form.

A Markup Interpretation of Optimal Rules for Irreversible Investment

We re-examine the basic investment problem of deciding when to incur a sunk cost to obtain a stochastically fluctuating benefit. The optimal investment rule ...

[PDF] A Knightian irreversible investment problem | Semantic Scholar

Semantic Scholar extracted view of "A Knightian irreversible investment problem" by Giorgio Ferrari et al.

Irreversible Investment with Regime Shifts∗ - Berkeley Haas

Section 3 derives the firm's objec- tive function and optimality conditions. Section 4 determines the value-maximizing investment policy. Section 5 presents ...

Irreversibility, Uncertainty, and Investment - JSTOR

First, I will review some basic models of irreversible investment to illustrate the option-like characteristics of invest- ment opportunities, and to show how ...

A New Approach to the Irreversible Investment Problem - EconStor

We also ap- ply the stochastic representation method to this utility-based decision problem and derive the optimal investment rule in an ...

On an Irreversible Investment Problem with Two-Factor Uncertainty

46). Page 7. 6. DAMMANN AND FERRARI. Probabilistic Representation of the Value Function.

A Knightian Irreversible Investment Problem - IDEAS/RePEc

In a time-homogeneous setting { where risk is driven by a geometric Brownian motion and Knightian uncertainty is realized through a so-called "\$\kappa$ -- ...

Real Options; Irreversible Investment; Optimal Stopp - CRC 1283

We now provide a probabilistic represen- tation of the value function V of the stopping problem (2.4). This representation is essential for the.