Add to ORKGWe correct the analysis of the model of time to build in Majd and Pindyck (1987 Journal of Financial Economics 18, 7-27) for the omission of an essential optimality condition, Our analysis reveals an additional insight: long times to build reduce the effects of increased project value volatility (i,e., higher investment thresholds) in comparison to standard real option models of investment under uncertainty, where investment is instantaneous. Thus, a 'naive' NPV rule can sometimes be an appropriate initial guide to investment. (C) 2000 Elsevier Science S.A. All rights reserved. JEL classification: C63; D92
A firm must consider many factors when adopting an investment policy including, but not limited to t...
This paper analyzes an irreversible “where-and-when” investment decision, in which a government must...
Real options analysis typically assumes that projects are continuously evaluated and launched at pre...
This article develops a real option model with uncertain and sequential investment and with time to ...
We establish explicit socially optimal rules for an irreversible investment decision with time-to-bu...
This paper examines the effect of uncertainty on investment timing in a canonical real options model...
We argue that the NPV evaluation model has gained an undeservedly poor treatment in recent articles ...
We establish explicit socially optimal rules for an irreversible investment deci-sion with time-to-b...
A novel speci\u85cation of the time-to-build (TTB) assumption is presented whereby \u85rms invest mu...
In this paper I develop a theoretical framework of irreversible investment under uncertainty in whic...
http://www.jstor.org/stable/3087448We show that time-to-build, which creates a lag between the decis...
Abstract This article develops a real option model with uncertain and sequential investment and with...
We develop a dynamic investment options model with optimal capital structure and evaluate the effect...
We study the decision of when to invest in an indivisible project whose value is perfectly observabl...
"Time-to-build" models of investment expenditures play an important role in many traditional and mod...
A firm must consider many factors when adopting an investment policy including, but not limited to t...
This paper analyzes an irreversible “where-and-when” investment decision, in which a government must...
Real options analysis typically assumes that projects are continuously evaluated and launched at pre...
This article develops a real option model with uncertain and sequential investment and with time to ...
We establish explicit socially optimal rules for an irreversible investment decision with time-to-bu...
This paper examines the effect of uncertainty on investment timing in a canonical real options model...
We argue that the NPV evaluation model has gained an undeservedly poor treatment in recent articles ...
We establish explicit socially optimal rules for an irreversible investment deci-sion with time-to-b...
A novel speci\u85cation of the time-to-build (TTB) assumption is presented whereby \u85rms invest mu...
In this paper I develop a theoretical framework of irreversible investment under uncertainty in whic...
http://www.jstor.org/stable/3087448We show that time-to-build, which creates a lag between the decis...
Abstract This article develops a real option model with uncertain and sequential investment and with...
We develop a dynamic investment options model with optimal capital structure and evaluate the effect...
We study the decision of when to invest in an indivisible project whose value is perfectly observabl...
"Time-to-build" models of investment expenditures play an important role in many traditional and mod...
A firm must consider many factors when adopting an investment policy including, but not limited to t...
This paper analyzes an irreversible “where-and-when” investment decision, in which a government must...
Real options analysis typically assumes that projects are continuously evaluated and launched at pre...