We investigate the entry timing and location decisions under market-size uncertainty with Brownian motions in a continuous-time spatial competition duopoly model a la d'Aspremont et al. (1979). Under a sequential equilibrium, the threshold of the follower non-monotonically increases in...

This paper presents a real options model of alliance formation between two firms for entry in a new market and analyzes how different compensation measures affect the alliance timing and option values. Generally, when profit structures of the two firms before and after an alliance are different,...

This study analyzes a real options model of mergers and takeovers between two firms facing different but correlated uncertainty in profits. It is assumed that firms can choose two alternatives; hostile takeover or friendly merger. In a hostile takeover, a bidder firm takes all the extra value...