Perotti, Enrico C; Rossetto, Silvia - C.E.P.R. Discussion Papers - 2001
We investigate the timing and the valuation of strategic investment aimed at enhancing entry opportunities in related … market segments. As demand is uncertain, entry options should be exercised at the optimal time, trading off the market share … gain against the option to wait until more information is revealed, while anticipating competitors' entry behaviour. When …