Avinash K. Dixit is John J. F. Sherrerd '52 University Professor of Economics at Princeton University. His most recent book is Thinking Strategically, with Barry Nalebuff (Norton). Robert S. Pindyck is Mitsubishi Bank Professor of Economics at the Sloan School of Management, MIT. His books include Econometric Models and Economic Forecasts, with Daniel L. Rubinfeld (McGraw-Hill).

"[The authors'] approach has powerful implications for investors in marketable assets as well. No investment professional or CFO can afford to ignore this brilliant new book."—Peter L. Bernstein, author of Capital Ideas: The Improbable Origins of Modern Wall Street

• Preface1A New View of Investment32Developing the Concepts Through Simple Examples263Stochastic Processes and Ito's Lemma594Dynamic Optimization under Uncertainty935Investment Opportunities and Investment Timing1356The Value of a Project and the Decision to Invest1757Entry, Exit, Lay-Up, and Scrapping2138Dynamic Equilibrium in a Competitive Industry2479Policy Intervention and Imperfect Competition28210Sequential Investment31911Incremental Investment and Capacity Choice35712Applications and Empirical Research394References429Symbol Glossary445Author Index449Subject Index455

Avinash K. Dixit is John J. F. Sherrerd '52 University Professor of Economics at Princeton University. His most recent book is Thinking Strategically, with Barry Nalebuff (Norton). Robert S. Pindyck is Mitsubishi Bank Professor of Economics at the Sloan School of Management, MIT. His books include Econometric Models and Economic Forecasts, with Daniel L. Rubinfeld (McGraw-Hill).

"[The authors'] approach has powerful implications for investors in marketable assets as well. No investment professional or CFO can afford to ignore this brilliant new book."—Peter L. Bernstein, author of Capital Ideas: The Improbable Origins of Modern Wall Street

• Preface1A New View of Investment32Developing the Concepts Through Simple Examples263Stochastic Processes and Ito's Lemma594Dynamic Optimization under Uncertainty935Investment Opportunities and Investment Timing1356The Value of a Project and the Decision to Invest1757Entry, Exit, Lay-Up, and Scrapping2138Dynamic Equilibrium in a Competitive Industry2479Policy Intervention and Imperfect Competition28210Sequential Investment31911Incremental Investment and Capacity Choice35712Applications and Empirical Research394References429Symbol Glossary445Author Index449Subject Index455