Firms’ investment decisions in response to demand and price uncertainty
نویسندگان
چکیده
منابع مشابه
Price Cap Regulation and Investment Incentives Under Demand Uncertainty
We study the e¤ect of price cap regulation on investment in new capacity in an oligopolistic (Cournot) industry, using a continuous time model with stochastic demand. A price cap has two mutually competing e¤ects on investment under demand uncertainty: it makes the option of deferring investment very valuable, but it also reduces the interest of strategic underinvestment to raise prices. We sho...
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ژورنال
عنوان ژورنال: Applied Economics
سال: 2008
ISSN: 0003-6846,1466-4283
DOI: 10.1080/00036840600959909