Skip to main content

Strategic Investment under Uncertainty: Merging Real Options with Game Theory

  • Chapter
Real Options

Part of the book series: ZfB-Ergänzungshefte ((ZFB))

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 49.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 64.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Boyer, M., Lasserre, P., Mariotti, T., Moreaux, M. (2001): Real options, preemption, and the dynamics of industry investments. In: working paper, Universite du Quebec a Montreal, Montreal, Canada.

    Google Scholar 

  • Dixit, A. K., Pindyck, R. S. (1996): Investment under Uncertainty, 2nd printing, Princeton University Press, Princeton, USA.

    Google Scholar 

  • Dutta, P. K., Lach, S., Rustichini, A. (1995): Better late than early. Journal of Economics and Management Strategy 4, 563–589.

    Article  Google Scholar 

  • Fudenberg, D., Tirole, J. (1985): Preemption and rent equalization in the adoption of new technology. The Review of Economic Studies 52, 383–401.

    Article  Google Scholar 

  • Grenadier, S. R. (1996): The strategic exercise of options: development cascades and overbuilding in real estate markets. Journal of Finance 51, 1653–1679.

    Article  Google Scholar 

  • Grenadier, S. R. (2000): Game Choices: The Intersection of Real Options and Game Theory, Risk Books, London, United Kingdom.

    Google Scholar 

  • Hoppe H., Lehmann-Grube U. (2001): Second-mover advantages in dynamic quality competition. Journal of Economics and Management Strategy 10: 419–433.

    Article  Google Scholar 

  • Huisman, K. J. M. (2001): Technology Investment: a Game Theoretic Real Option Approach, Kluwer, Dordrecht, The Netherlands.

    Google Scholar 

  • Huisman, K. J. M., Kort, P. M. (2000): Strategic technology adoption taking into account future technological improvements: a real options approach. In: CentER DP No. 2000–52, Tilburg University, Tilburg, The Netherlands.

    Google Scholar 

  • Huisman, K. J. M., Kort, P. M. (2003): Strategic investment in technological innovations. European Journal of Operational Research 144, 209–223.

    Article  Google Scholar 

  • Lambrecht, B. (2001): The impact of debt financing on entry and exit in a duopoly. Review of Financial Studies 14, 765–804.

    Article  Google Scholar 

  • Lambrecht, B., Perraudin, W. (2003): Real options and preemption under incomplete information. Journal of Economic Dynamics and Control 27, 619–643.

    Article  Google Scholar 

  • Mason, R., Weeds, H. (2001): Irreversible investment with strategic interactions. In: CEPR Discussion Paper No. 3013.

    Google Scholar 

  • Mason, R., Weeds, H. (2002): The failing firm defense: merger policy and entry. In: working paper, University of Southampton, Southampton, United Kingdom.

    Google Scholar 

  • Miltersen, K. R., Schwartz, E. S. (2002): R D investments with competitive interactions. In: working paper University of Southern Denmark, Odense, Denmark, and UCLA, Los Angeles, USA.

    Google Scholar 

  • Murto, P. (2003): Exit in duopoly under uncertainty. In: RAND Journal of Economics, forthcoming.

    Google Scholar 

  • Nielsen, M. J. (2002): Competition and irreversible investments. International Journal of Industrial Organization 20, 731–743.

    Article  Google Scholar 

  • Pawlina, G., Kort, P. M. (2001): Real options in an asymmetric duopoly: who benefits from your competitive disadvantage?. In: CentER DP No. 2001–95, Tilburg University, Tilburg, The Netherlands.

    Google Scholar 

  • Pawlina, G., Kort, P. M. (2002): The strategic value of flexible quality choice: a real options analysis. In: working paper, Tilburg University, Tilburg, The Netherlands.

    Google Scholar 

  • Pawlina, G., Kort, P. M. (2003): Strategic capital budgeting: Asset replacement under market uncertainty. OR Spectrum 25, 443–479.

    Article  Google Scholar 

  • Pennings, E. (2002): Optimal pricing and quality choice when investment in quality is irreversible. In: working paper, Bocconi University, Milano, Italy.

    Google Scholar 

  • Smets, E (1991): Exporting versus FDI: The effect of uncertainty, irreversibilities and strategic interactions. In: working paper, Yale University, New Haven, USA.

    Google Scholar 

  • Sparla, T. (2002): Closure options in duopoly: the case of second mover advantages. In: working paper, University of Dortmund, Dortmund, Germany.

    Google Scholar 

Download references

Authors

Editor information

Thomas Dangl Michael Kopel Wolfgang Kürsten

Rights and permissions

Reprints and permissions

Copyright information

© 2004 Springer Fachmedien Wiesbaden

About this chapter

Cite this chapter

Huisman, K.J.M., Kort, P.M., Pawlina, G., Thijssen, J.J.J. (2004). Strategic Investment under Uncertainty: Merging Real Options with Game Theory. In: Dangl, T., Kopel, M., Kürsten, W. (eds) Real Options. ZfB-Ergänzungshefte. Gabler Verlag, Wiesbaden. https://doi.org/10.1007/978-3-663-12338-5_4

Download citation

  • DOI: https://doi.org/10.1007/978-3-663-12338-5_4

  • Publisher Name: Gabler Verlag, Wiesbaden

  • Print ISBN: 978-3-409-03443-2

  • Online ISBN: 978-3-663-12338-5

  • eBook Packages: Springer Book Archive

Publish with us

Policies and ethics