Stochastic versions of a classical model for natural ventilation are proposed and investigated to demonstrate the effect random fluctuations on stability predictability. In stochastic context, well-known deterministic result that driven by competing effects buoyancy wind admits multiple steady states can be misleading. With in exchanged with an external environment modelled as Wiener process, s...

The real options tradition originally predicted a decreasing relationship between uncertainty and investment, through the positive effect of higher uncertainty on the trigger level for revenue relative to costs. An opposing effect on the probability of reaching the level has been identified, yielding a total effect with ambiguous sign. This paper makes three points. The “opposing” effect is not...