Strategic Investment Under Uncertainty : A Synthesis

Research contributions providing insights at the intersection of real options analysis and industrial organization have become numerous in the recent decade. In the present paper, we provide an overview aimed at categorizing and relating these research streams. We highlight managerial insights about the type of competitive reaction, the manner in which information is revealed, the nature of the competitive advantage (first vs. second-mover advantage), firm heterogeneity, capital divisibility, and the number of competing firms