Optimal procurement and investment in new technologies under uncertainty

HIGHLIGHTS

  • who: Malin Arve from the University of Groningen have published the article: Optimal procurement and investment in new technologies under uncertainty, in the Journal: (JOURNAL)
  • what: In a setting the authors show how the asymmetric information on the stochastic variables optimally distorts technology choice and timing. The authors show how the buyer - the principal - can choose the payment structure to incentivize the firms to reveal the evolution of their costs and to either invest or abandon the process when pre-determined cost thresholds are reached. The authors show how the rents that need to be . . .

     

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