Resumen de Tourism investments under uncertainty: an economic analysis of "eco-monsters"
Guido Candela, Massimiliano Castellani, Maurizio Mussoni
'Ecological monsters' can be the legal outcome of rational choices made by three players: a firm, a policymaker and Nature. The firm asks the local policymaker for permission to undertake a real investment project in a stochastic framework, with real options and environmental externalities. The model consists of a non-cooperative game and its solution implies a bizarre outcome, both for the firm when it interrupts and abandons the investment project and for the policymaker when it is unable to avoid eco-monsters. Policy implications and partisan effects are explored.
