We carry out a comparative statics analysis for a two-dimensional real option model under two correlated geometric Brownian motions, especially focus on the expected waiting time to invest. We find that the volatilities in the two-dimensional model have more complex effects than they have in the one-dimensional model. Although an increase in the threshold which caused by a change in value of a parameter leads to longer expected waiting time in the one-dimensional model, it is not always the case for the two-dimensional model. This result suggests that a two-dimensional real options model is not only more realistic but also more useful in making acceptable investment plans.
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