Irreversibility, uncertainty and investment
Most investment expenditures have two important characteristics. First, they are largely irreversible; the firm cannot disinvest, so the expenditures are sunk costs. Second, they can be delayed, allowing the firm to wait for new information about prices, costs, and other mark...
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| Format: | Working Paper |
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MIT Center for Energy and Environmental Policy
Research
2009
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| Online Access: | http://hdl.handle.net/1721.1/50140 |