It appears to be widely accepted in the real options literature that an increase in uncertainty should have an inhibiting effect on investment.
This paper examines the effect of uncertainty on investment in a real option model. By introducing the contingent claims analysis the opportunity to invest�...
This effect refers to the relationship between asset price returns and volatility, which in most cases are negatively correlated. An explanation for this effect�...
Our starting point is the real option model of investment developed by McDonald and Siegel ... On the Investment-Uncertainty Relationship in a Real Option Model.
This paper examines the effect of uncertainty on investment in a real option model. By introducing the contingent claims analysis the opportunity to invest�...
Abstract: Only recently the general assumption of a negative investment-uncertainty relationship has been questioned in the literature and some examples of�...
Abstract—This paper examines the effect of uncertainty on invest- ment in a real option model. By introducing the contingent claims.
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The real options tradition originally predicted a decreasing relationship between uncertainty and investment, through the positive effect of higher�...
On the Investment-Uncertainty Relationship in a Real Option Model ...
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May 25, 2011 � We consider the classical investment timing problem in a framework where the instantaneous volatility of the project value is itself given by a�...
On the Investment-Uncertainty Relationship in a Real Option Model. Jour- nal of Economic Dynamics and Control 24, 219-225. 12. Page 15. Figure 1: American�...