Investment under uncertainty: Timing and capacity optimization

Research output: ThesisDoctoral Thesis

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Abstract

This thesis consists of three chapters on analyzing the optimal investment timing and investment capacity for the firm(s) undertaking irreversible investment in an uncertain environment. Chapter 2 studies the investment decision of a monopoly firm when it can adjust output quantity in a market with uncertain demand. Chapter 3 investigates the strategic interactions of investment decisions between a first investor that always produces up to capacity and a second investor that can adjust the output quantity. Chapter 4 considers the regulator’s optimal subsidy policy to align the firm’s optimal investment decision to the social optimal decision.
Original languageEnglish
QualificationDoctor of Philosophy
Awarding Institution
  • Tilburg University
Supervisors/Advisors
  • Kort, Peter, Promotor
  • Talman, A.J.J., Promotor
  • Hagspiel, V., Co-promotor
Award date6 Nov 2017
Place of PublicationTilburg
Publisher
Print ISBNs978 90 5668 531 7
Publication statusPublished - 2017

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