Abstract This study explores the welfare implications of mitigating investment uncertainty in context Easley and O’Hara (Rev Financ Stud 22:1817–1843, 2009) While one may expect gains by encouraging participation financial markets ambiguity-averse investors, we formally show that it hurts other investors thus is not Pareto-improving without appropriate income transfers. We also examine effects ...

We study logistical investment flexibility provided by modular processing technologies for mitigating risk. Specifically, we propose a multi-stage stochastic programming formulation that determines optimal capacity expansion plans mitigate demand uncertainty. The accounts multi-product dependencies between small/large units and trade-offs expected profit uses cumulative risk measure to avoid ti...