Afzal Siddiqui

Learn More
Traditional real options analysis addresses the problem of investment under uncertainty assuming a risk-neutral decision maker and complete markets. In reality, however, decision makers are often risk averse and markets are incomplete. We confirm that risk aversion lowers the probability of investment and demonstrate how this effect can be mitigated by(More)
A monopolist typically defers entry into an industry as both price uncertainty and the level of relative risk aversion increase. The former attribute may be present in most deregulated industries, while the latter may be relevant for reasons of market incompleteness or the presence of technical uncertainty. By contrast, it has been shown that the presence(More)
Typically, in competitive electricity markets, the vertically integrated utilities that were r esponsible for ensuring system reliability in their own service territories, or groups of territories, cease to exist. The burden falls to an independent system operator ISO to ensure that enough ancillary services AS are available for safe, stable, and reliable(More)
  • 1