A model of capacity choice under Knightian uncertainty
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DOI: 10.1016/j.econlet.2018.11.024
Abstract: This paper introduces Knightian uncertainty into the standard model of capacity choice and investigates its impact on the firm’s expansion decision. First, we find Knightian uncertainty reduces both the firm value and marginal value of… read more here.
Keywords: capacity choice; knightian uncertainty; uncertainty; value ... See more keywords