| Article ID: | iaor2004951 |
| Country: | United States |
| Volume: | 26 |
| Issue: | 4 |
| Start Page Number: | 637 |
| End Page Number: | 653 |
| Publication Date: | Nov 2001 |
| Journal: | Mathematics of Operations Research |
| Authors: | Lumley R.R., Zervos M. |
| Keywords: | control processes |
We consider a model for investment decisions in the natural resource industry with switching costs. This model gives rise to a problem combining features of both abosolutely continuous and impulse stochastic control that we explicitly solve. The solution takes qualitatively different forms, depending on parameter values.