Chu, YongQiang; Sing, Tien - In: The Journal of Real Estate Finance and Economics 34 (2007) 3, pp. 327-345
This paper examines the sub-game equilibrium strategies for a duopoly real option model consisting of two firms with asymmetric demand functions. The relative strength of the firms is found to have significant impact on the firms’ equilibrium strategies. Preemptive strategies are critical if...