Article ID Journal Published Year Pages File Type
985938 Review of Financial Economics 2011 8 Pages PDF
Abstract
► We investigate a real investment problem under asymmetric information. ► The investment comprises exploratory and development phases. ► We explore the effects of costly exploration. ► High exploration cost can lead to a pooling policy not contingent on project type. ► High exploration cost can lead to wealth transfer from owner to manager.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
The effects of costly exploration on optimal investment timing
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