Irreversible investments and ambiguity aversion

Real option valuation has traditionally been concerned with investment under project value uncertainty while assuming that the agent has perfect confidence in a specific model. However, agents do not generally have perfect confidence in their model and this ambiguity may affect their decisions. In a...

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Bibliographic Details
Main Authors: Cartea, Á, Jaimungal, S
Format: Journal article
Published: World Scientific Publishing 2017