Can greater uncertainty hasten investment

摘要: This paper examines irreversible investment in a project with uncertain returns, when there is an advantage to being the first invest and externalities investing others also do so. We show that duopoly, greater uncertainty can actually hasten rather than delay investment, contrary usual outcome, due its effect on equilibrium of timing game between players. In presence positive externalities, raise leader's value more follower's; pre-emption then entails leader must act sooner. A switch pattern as increases possible, which may investment. These findings reinforce importance extending real options analysis include strategic interactions