Two bargaining parties play the Nash Demand Game to share a pie whose size is determined by one party's investment decision. Various investment levels are subgame-perfect. Adding the investment decision to Young's evolutionary bargaining model yields the following long-run outcome: efficient investment prevails and the investor's share of the pie approximates die maximum of (i) the smallest sha...

This article analyzes determinants of growth across labor markets in the United States, using a production function approach based on four inputs: labor, manufacturing investment, human capital investment, and public capital investment. We find little role for public capital investment in growth, but that manufacturing investment spurred growth in nonmetropolitan areas, in contrast to metropoli...

Several papers at this conference have stressed the favorable effect on economic growth of increases in business investment, especially investment in machinery and equipment. The authors of these papers have reminded us that such investment does more than increase the capital stock. Investment also embodies new technologies and may involve externalities that cause the national return to private...

Hold-up risks can be mitigated by creating asymmetric information about the investment using information control. In this paper, we study the investment level and welfare achievable with information control and the information structure that implements them. Our main result identifies a separation between information that creates ex-ante investment incentive and information that causes ex-post ...

Evolutionary investment strategies have been found to adapt distribution of investors’ fund to technological changes of economic industries. In this paper we use evolutionary algorithm (EA) to improve investment strategies in economic system comparing shares of most profitable investors with other ones. Proposed algorithm selects an optimal combination of investment share in different industrie...

We examine in an experiment the causes, consequences and possible cures of myopic loss aversion (MLA) for investment behaviour under risk. We find that both, investment horizons and feedback frequency contribute almost equally to the effects of MLA. Longer investment horizons and less frequent feedback lead to higher investments. However, when given the choice, subjects prefer on average shorte...

The best predictor of current investment at the firm level is lagged investment. This lagged-investment e§ect is empirically more important than the cash-flow and Q e§ects combined. We show that the specification of investment adjustment costs proposed by Christiano, Eichenbaum and Evans (2005) predicts the presence of a lagged-investment e§ect and that a generalized version of their model is c...

M&A and green field investment (GFI) are very important methods of company growth. Each of the investment ways could bring different outstanding achievement and development of company, so it is very important to choose the way of investment. This paper discusses the boundary of M&A and green field investment both in external and internal levels, and then uses power industry data to build a deci...

This paper applies real options theory to establish an overseas oil investment evaluation model that is based on Monte Carlo simulation and is solved by the Least Squares Monte-Carlo method. To better reflect the reality of overseas oil investment, our model has incorporated not only the uncertainties of oil price and investment cost but also the uncertainties of exchange rate and investment en...

International investment agreements are foundational instruments in a transnational investment regime that governs how states regulate the foreign-owned assets and the foreign investment activities of private actors. Over 3,000 investment agreements between states govern key governmental powers and form the basis for an emerging transnational investment regime. This transnational regime signifi...