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Real options and real strategies

✍ Scribed by Stefanos Zarkos; Robert E. Morgan; Yiannis Kouropalatis


Publisher
John Wiley and Sons
Year
2007
Tongue
English
Weight
150 KB
Volume
16
Category
Article
ISSN
1086-1718

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This paper introduces incomplete information and preemption into an equilibrium model of ΓΏrms facing real investment decisions. The optimal investment strategy may lie anywhere between the zero-NPV trigger level and the optimal strategy of a monopolist, depending on the distribution of competitors'