How should firms decide whether and when to invest in new capital equipment, additions to their workforce, or the development of new products? Why have traditio

The study of investment under uncertainty was stagnant for several decades until developments in real options revitalized the field. The topics covered in this

This book is devoted to investment decision-making under uncertainty. The book covers three basic approaches to this process: the stochastic dominance approach;

This book presents an up-to-date overview of the theory as well as the empirics of the relationship between investment, financial imperfections and uncertainty.

Irreversible investment is especially sensitive to such risk factors as volatile exchange rates and uncertainty about tariff structures and future cash flows. I