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Investment in innovations and competition: an option pricing approach

โœ Scribed by Ariane Reiss


Book ID
117717752
Publisher
Elsevier Science
Year
1998
Tongue
English
Weight
1008 KB
Volume
38
Category
Article
ISSN
1062-9769

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This paper discusses the investments needed for the introduction of hydrogen as a transport fuel. Using option theory, we develop a model to calculate the value and optimal timing of a first commercial rollout of hydrogen vehicles in a larger area, taking Japan as a specific example. We find that th