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Seminar

Investment timing and reputation

Microeconomics seminar

Add to calendar 2025-11-11 14:15 2025-11-11 15:30 Europe/Rome Investment timing and reputation Conference Room Villa La Fonte YYYY-MM-DD
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Scheduled dates

Nov 11 2025

14:15 - 15:30 CET

Conference Room, Villa La Fonte

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This event features a discussion with Professor Sara Shahanaghi (Toulouse School of Economics).
An agent learns dynamically about the profitability of a project and decides when to make an irreversible investment. The agent seeks to maximise his reputation for learning. Equilibrium investment is dictated by the prior about the project: the agent can be more willing to invest in projects that are ex-ante less likely to succeed. Reputation induces distortions in investment timing: investment is premature for projects that are unlikely to succeed and delayed for projects that are unlikely to fail. When reputational motives are sufficiently strong, these distortions can be dynamic in nature, leading to premature investment at the beginning of the research process and under-investment towards its end. Register
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