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Symmetric equilibrium strategies in game theoretic real option models

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Listed author(s):
  • Thijssen, Jacco J.J.
  • Huisman, Kuno J.M.
  • Kort, Peter M.

Abstract

This paper considers the problem of investment timing under uncertainty in a duopoly framework. When both firms want to be the first investor a coordination problem arises. Here, a method is proposed to deal with this coordination problem, involving the use of symmetric mixed strategies.

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File URL: http://www.sciencedirect.com/science/article/pii/S0304406812000389
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Article provided by Elsevier in its journal Journal of Mathematical Economics.

Volume (Year): 48 (2012)
Issue (Month): 4 ()
Pages: 219-225

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Handle: RePEc:eee:mateco:v:48:y:2012:i:4:p:219-225
DOI: 10.1016/j.jmateco.2012.05.004
Contact details of provider: Web page: http://www.elsevier.com/locate/jmateco

Keywords: Timing games; Real options; Preemption;

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  17. repec:fth:tilbur:9992 is not listed on IDEAS
  18. Leo K. Simon., 1987. "A Multistage Duel in Continuous Time," Economics Working Papers 8757, University of California at Berkeley.
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