Thijssen, J.J.J.; Huisman, K.J.M.; Kort, P.M. - Department of Economics, Trinity College Dublin - 2003
A model is considered where two firms compete in investing in a risky project. At certain points in time the firms obtain imperfect information about the profitability of the project. We impose that investing first can be beneficial because a Stackelberg advantage, and thus a higher market...