We study investment timing under uncertainty and imperfect competition. The real options literature studies investment timing when (a) the firm has a monopoly over an investment opportunity, and (b) the product market is perfectly competitive. As a result, firms tend to postpone investment as...

We provide a strategic rationale for growth options under uncertainty and imperfect competition. In a market with strategic competition, investment confers a greater capability to take advantage of future growth opportunities. This strategic advantage leads to the capture of a greater share of...

The literature on strategic growth options examines the impact of investment to gain comparative advantages. The commitment of irreversible investment may confer strategic advantages as a result of a reduction in future expansion costs (Dixit, 1980) or operating costs (Kulatilaka and Perotti,...