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Symmetric equilibrium strategies in game theoretic real option models

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  • 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.

Suggested Citation

  • Thijssen, Jacco J.J. & Huisman, Kuno J.M. & Kort, Peter M., 2012. "Symmetric equilibrium strategies in game theoretic real option models," Journal of Mathematical Economics, Elsevier, vol. 48(4), pages 219-225.
    • Handle: RePEc:eee:mateco:v:48:y:2012:i:4:p:219-225
    DOI: 10.1016/j.jmateco.2012.05.004
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    Full references (including those not matched with items on IDEAS)

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