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A Knightian Irreversible Investment Problem
3. Existence and Uniqueness of the Optimal Investment Plan
1. Introduction
2. Setting and Problem Formulation
3. Existence and Uniqueness of the Optimal Investment Plan
4. First-order Conditions and Base Capacity Policies
5. Explicit Solution in an Homogeneous Setting with Infinite Horizon
5.1. Setting
5.2. Solving Problem (5.1)
5.3. Verifying that ¶- is the worst-case scenario
Acknowledgments
Appendix A.
Appendix B.
Appendix C.
References
Working Paper
A Knightian Irreversible Investment Problem
Place and Date of Creation
2020
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