The valuation of N-phased investment projects under jump-diffusion processes

In this paper we consider N-phased investment opportunities where the time evolution of the project value follows a jump-diffusion process. An explicit valuation formula is derived under two different scenarios: in the first case we consider fixed and certain investment costs and in the second case we consider cost uncertainty and assume that investment costs follow a jump-diffusion process

Development Strategies for Tourism Destinations: Tourism Sophistication vs. Resource Investments

This paper investigates the effectiveness of development strategies for tourism destinations. We show that resource investments unambiguously increase tourism revenues and that increasing the degree of tourism sophistication, that is increasing the variety of tourism related goods and services, increases tourism activity and decreases the perceived quality of the destination’s resource endowment, leading to an ambiguous effect on tourism revenues. We disentangle these two effects and characterize situations where increasing the degree of tourism sophistication is a viable development strategy and where it is impracticable without resource investment.Tourism destination; tourism sophistication; resource investments; tourism demand; development strategy

Kondo physics in transport through a quantum dot with Luttinger liquid leads

We study the gate voltage dependence of the linear conductance through a quantum dot coupled to one-dimensional leads. For interacting dot electrons but noninteracting leads Kondo physics implies broad plateau-like resonances. In the opposite case Luttinger liquid behavior leads to sharp resonances. In the presence of Kondo as well as Luttinger liquid physics and for experimentally relevant parameters, we find a line shape that resembles the one of the Kondo case.Comment: 4+ pages, 4 figures include