This paper analyses the exercise decision of non-exclusive real options in a two-player setting. A general model of non-exclusive real options, allowing the underlying asset to follow any strong Markov process is developed, thus extending the existing literature, which is mainly based on...

We investigate how a downstream merger affects input prices and equilibrium profits when there are price interdependencies among firms. To do so, we develop a very simple model where different inputs, provided by monopolist suppliers, may be combined to produce differentiated products sold by...