Irreversible investments under uncertainty: A discussion of some explicit models

In this thesis we study a class of irreversible, stochastic investment models where the optimal strategy can be computed exactly. The optimal strategy is always to invest just enough to keep the investment process outside a certain "forbidden region", and we discuss how different model specifications lead to different shapes of the forbidden region. The different behaviors are related to how expansion costs and production income vary with the state of the the marke