Contrary to most of the papers in the literature of investment under uncertainty we study models that not only capture the timing, but also the size of the investment. We consider a monopoly setting as well as a duopoly setting and compare the results with the standard models in which the firms do not have the capacity choice. Our main results are the following. First, for low uncertainty value...

test method facet is one of the factors which can have an influence on the test takers’ performance. the purpose of the current study was to investigate the effects of two different response types, multiple-choice cloze and multiple-choice test, on the pre-intermediate and intermediate test takers’ reading comprehension performance. to this end, 40 pre-intermediate and intermediate learners par...

This short paper introduces the concept of Asian options in the capacity choice literature. We develop a simple model for optimal capacity setting under average demand uncertainty for a single firm. When the firm faces moderate or significant stochastic demands in its current product line, expanding capacity is beneficial. If the demand is extremely stochastic, a capacity lag or reduction is mo...

This paper aims to apply the real options game theoretic study impact of sudden events on optimal investment timing and capacity choice in a duopoly market. We model market demand cost as geometric Brownian motions with jumps driven by Poisson processes. A new computing method independent specific distribution functions is proposed for option models jump processes random frequency amplitude. Ba...