Preemption, Start-Up Decisions and the Firms’ Capital Structure

In this article, we analyse the interactions between financial and start-up decisions in an oligopolistic framework, where firms compete to enter a new market. We show that preemption can substantially reduce the negative effects of credit rationing on start-up investment decisions.capital structure, irreversibility, preemption, real options

Discussion to: ‘Guidelines on the use of inverse velocity method as a tool for setting alarm thresholds and forecasting landslides and structure collapses’ by T. Carlà, E. Intrieri, F. Di Traglia, T. Nolesini, G. Gigli and N. Casagli

The paper ‘Guidelines on the use of inverse velocity method as a tool for setting alarm thresholds and forecasting landslides and structure collapses’ by T. Carlà, E. Intrieri, F. Di Traglia, T. Nolesini, G. Gigli and N. Casagli deals with a sensitive topic for landslide risk management. Exploring the pre-failure behaviour of four different case histories, the authors proposed standard procedures for the application of the inverse velocity method (INV, Fukuzono 1985). Specifically, they suggested guidelines for the filtering of velocity data and an original and simple approach to automatically set the first and the second alarm thresholds using the inverse velocity method. The present discussion addresses three different topics: (1) data filter selection according to the features of monitoring instrument; (2) the importance of data sampling frequency for the forecasting analysis and (3) the influence of the starting point (SP in this discussion) for the application of INV analysis. Moreover, based on this matter, a new method is proposed to update the INV analysis on an ongoing basis

Preemption, Start-Up Decisions and the Firms' Capital Structure

In this article, we analyse the interactions between financial and start-up decisions in an oligopolistic framework, where firms compete to enter a new market. We show that preemption can substantially reduce the negative effects of credit rationing on start-up investment decisions.capital structure

Static and Dynamic Efficiency of Irreversible Health Care Investments under Alternative Payment Rules

The paper studies the incentive for providers to invest in new health care technologies under alternative payment systems, when the patients' benefits are uncertain. If the reimbursement by the purchaser includes both a variable (per patient) and a lump-sum component, efficiency can be ensured both in the timing of adoption (dynamic) and the intensity of use of the technology (static). If the second instrument is unavailable, a trade-off may emerge between static and dynamic efficiency. In this context, we also discuss how the regulator could use the control of the level of uncertainty faced by the provider as an instrument to mitigate the trade-off between static and dynamic efficiency. Finally, the model is calibrated to study a specific technology.Health Care, Investments

Investment Size and Firm's Value under Profit Sharing Regulation

In this article we analyse the effects of different regulatory schemes (price cap and profit sharing) on a firm’s investment of endogenous size. Using a real option approach in continuous time, we show that profit sharing does not affect a firm’s start-up decision relative to a pure price cap scheme. Unless the threshold after which profit sharing intervenes is very high, however, introducing a profit sharing element delays further investments: this decreases the present value of total investment. We also evaluate the reduction in the firm’s value due to profit sharing, linking this reduction to the option value of future investments.regulation, investment, profit sharing, real options, RPI-x

Investment Size and Firm’s Value Under Profit Sharing Regulation

In this article we analyse the effects of different regulatory schemes (price cap and profit sharing) on a firm’s investment of endogenous size. Using a real option approach in continuous time, we show that profit sharing does not affect a firm’s start-up decision relative to a pure price cap scheme. Unless the threshold after which profit sharing intervenes is very high, however, introducing a profit sharing element delays further investments: this decreases the present value of total investment. We also evaluate the reduction in the firm’s value due to profit sharing, linking this reduction to the option value of future investments.Regulation, Investment, Profit sharing, Real options, RPI-x

Profit Sharing and Investment by Regulated Utilities: a Welfare Analysis

We analyse the effects of different regulatory schemes (price cap and profit sharing) on a firm’s investment of endogenous size. Using a real option approach in continuous time, we show that profit sharing does not delay a firm’s start-up investment relative to a pure price cap scheme. Profit sharing does not necessarily affect total investment either, if the threshold for profit sharing is high enough. Only a profit sharing intervening for low profit levels may delay further investments. We also evaluate the effects of profit sharing on social welfare, determining the level of profit that should optimally trigger tighter regulation: profit sharing should be less stringent in sectors where there are bigger investment opportunities.regulation, investment, profit sharing, real options, RPI-x

Tax Competition, Investment Irreversibility and the Provision of Public Goods

This article studies the effects of tax competition on the provision of public goods under business risk and partial irreversibility of investment. As will be shown, the provision of public goods changes over time and also depends on the business cycle. In particular, under source-based taxation, in the short term, public goods can be optimally provided during a downturn. The converse is true during a recovery: in this case, they are underprovided. In the long term, however, tax competition does not affect capital accumulation. This means that the provision of public goods is unaffected by taxation

Molecular diagnostics with electrochemical biosensors and arrays

Biosensors are self-contained analytical devices in which a bioreceptor is integrated with a transducer. The interaction between the bioreceptor and a target analyte generates a signal suitable for analytical purposes. In electrochemical biosensors, a change in the redox state of the biorecognition/analyte system generates a change in an electrochemical quantity which can be monitored by electroanalytical techniques. Electrochemical sensors can be miniaturized using ultramicroelectrodes and nanoelectrodes and their arrays as transducers. These devices are characterized by high specificity and sensitivity and improved detection limits. Biosensors can be used by non-specialist operators at the point of care. For the above reasons, within the frame of the Trans2care project, the Laboratory of Electrochemical Sensors of the University Ca’ Foscari of Venice will collaborate with the project partners to develop electrochemical sensors suitable for specific clinical needs