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Real Options and Signaling in Strategic Investment Games

Watanabe, Takahiro - 2011

A game in which an incumbent and an entrant decide the timings of entries into a new market is investigated. The profit flows involve two uncertain factors: (1) the basic level of the demand of the market observed only by the incumbent and (2) the fluctuation of the profit flow described by a...

Persistent link: https://www.econbiz.de/10014178766

Real Options Games Analysis of Sleeping Patents

Leung, Chi Man - 2013

Using the real options game approach, we analyze the two-stage preemptive patent-investment race between an incumbent and a challenger (new entrant) in a product market with profit flow uncertainty. The challenger can gain entry into the monopolized product market dominated by the incumbent by...

Persistent link: https://www.econbiz.de/10013094684

Strategic Entry and Market Leadership in a Two-Player Real Options Game

Shackleton, Mark B.; Tsekrekos, Andrianos E.; … - 2013

We analyse the entry decisions of competing firms in a two-player stochastic real option game, when rivals can exert different but correlated uncertain profitabilities from operating. In the presence of entry costs, decision thresholds exhibit hysteresis, the range of which is decreasing in the...

Persistent link: https://www.econbiz.de/10014119759

A Theory of Endogenous Time Preference, and Discounted Utility Anomalies

Boyarchenko, Svetlana; Levendorskii, Sergei - 2005

We explain essentially all known discounted utility anomalies as artefacts of the optimizing behavior of an individual with a time-separable utility function, who perceives a good as a source of a stochastic consumption stream, and believes that she can wait for an optimal moment to buy or sell...

Persistent link: https://www.econbiz.de/10014066800

Ambiguity in a real option game

Hellmann, Tobias; Thijssen, Jacco J. J. - 2015

strongly rectangular set of priors. We develop a strategy and equilibrium concept allowing for ambiguity and show that … motion and kappa-ambiguity does not equate to "lowest trend". …

Persistent link: https://www.econbiz.de/10010468336

Continuous-Time Option Games : Review of Models and Extensions

Guimarães Dias, Marco Antonio - 2016

This paper discusses a selected literature on continuous-time option games models, providing new insights and extensions. The paper analyzes both symmetrical and asymmetrical duopoly under uncertainty, including issues like preemption, non-binding collusion, perfect-Nash equilibriums,...

Persistent link: https://www.econbiz.de/10013004478

Strategic Investment in Taiwan Chain and Franchise Stores : A Real Options and Game-Theoretic Approach

Jan, Yin-Ching - 2011

The purpose of this study is to examine and demonstrate the strategic investment decisions faced by Taiwan's chain and franchise store enterprise. We show that incorporating an abandonment option to strategic timing in a game-theoretic real option approach makes the approach more complete and...

Persistent link: https://www.econbiz.de/10013123171

Chapter 17. Ambiguity and Nonexpected Utility

Karni, Edi; Maccheroni, Fabio; Marinacci, Massimo - In: Handbook of game theory with economic applications : …, (pp. 901-947). 2015

depart from the sure thing principle and model the phenomenon of ambiguity and ambiguity aversion. …

Persistent link: https://www.econbiz.de/10014025442

Ambiguity and social interaction

Eichberger, Jürgen; Kelsey, David; Schipper, Burkhard - 2005

We present a non-technical account of ambiguity in strategic games and show how it may be applied to economics and … social sciences. Optimistic and pessimistic responses to ambiguity are formally modelled. We show that pessimism has the … ambiguity on peace-making are examined. It is shown that ambiguity may select equilibria in coordination games with multiple …

Persistent link: https://www.econbiz.de/10010371082

Cautious belief formation

Bleile, Jörg - 2014

We provide an axiomatic approach to a belief formation process in an informational environment characterized by limited, heterogenous and differently precise information. For a list of previously observed cases an agent needs to express her belief by assigning probabilities to possible outcomes....

Persistent link: https://www.econbiz.de/10010356678