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Strategic Investments with Competition Under Uncertainty in the ASEAN/AEC : A Game-Theoretic Real Options Analysis

Los, Cornelis A. - 2014

market, to be completed by 2020. The single market will boost the competition in both ASEAN's internal and external markets …

Persistent link: https://www.econbiz.de/10013061529

Preemptive investment under uncertainty

Steg, Jan-Henrik - 2015

This paper provides a general characterization of subgame-perfect equilibria for a strategic timing problem, where two firms have the (real) option to invest irreversibly in some market. Profit streams are uncertain and depend on the market structure. The analysis of the problem emphasizes its...

Persistent link: https://www.econbiz.de/10011380662

Investment under Uncertainty and Correlated Privately Known Costs

Dehghani, Mohammad Hossein - 2019

This paper studies the behavior of two firms after a new investment opportunity arises. Examples of such an investment are technology adoption or market entry. Firms either invest immediately or wait until market uncertainty is resolved. Two types of separating equilibrium are possible when...

Persistent link: https://www.econbiz.de/10012905574

Preemption Games Under Levy Uncertainty

Boyarchenko, Svetlana - 2011

We study a stochastic version of Fudenberg and Tirole's (1985) preemption game to analyze the effects of jumps in the underlying uncertainty on equilibrium strategies. Two firms contemplate entering a new market where the demand follows a jump-diffusion process. Firms differ is the sunk costs of...

Persistent link: https://www.econbiz.de/10013125149

Preemption Games Under Levy Uncertainty

Boyarchenko, Svetlana - 2014

We study a stochastic version of Fudenberg -- Tirole's preemption game. Two firms contemplate entering a new market with stochastic demand. Firms differ in sunk costs of entry. If the demand process has no upward jumps, the low cost firm enters first, and the high cost firm follows. If leader's...

Persistent link: https://www.econbiz.de/10013045255

Differentiating to Reduce Strategic Uncertainty and Relax Competition

Smyth, Andrew - 2022

and relaxed competition. In its theory, firms compete over an infinite-horizon and discount the future so that relaxed … competition is feasible in equilibrium. However, firms face strategic uncertainty, so this equilibrium hinges on their beliefs … about their rivals' pursuit of relaxed competition. In this setting, certain beliefs can support differentiation and …

Persistent link: https://www.econbiz.de/10014077162

Rivalry and Uncertainty in Complementary Investments with Dynamic Market Sharing

Azevedo, Alcino - 2015

We study the combined effects of revenue and cost uncertainty as well competition on the timing optimization of … in firms behaviour. When uncertainty about the input costs and revenue are considered together with competition, the …

Persistent link: https://www.econbiz.de/10013026054

The evolutionary stability of optimism, pessimism and complete ignorance

Schipper, Burkhard - 2005

We provide an evolutionary foundation to evidence that in some situations humans maintain optimistic or pessimistic attitudes towards uncertainty and are ignorant to relevant aspects of the environment. Players in strategic games face Knightian uncertainty about opponents' actions and maximize...

Persistent link: https://www.econbiz.de/10010366542

The evolutionary stability of optimism, pessimism, and complete ignorance

Schipper, Burkhard - 2019

We provide an evolutionary foundation to evidence that in some situations humans maintain either optimistic or pessimistic attitudes towards uncertainty and are ignorant to relevant aspects of the environment. Players in strategic games face Knightian uncertainty about opponents' actions and...

Persistent link: https://www.econbiz.de/10012101422

Explosive oil prices

Gronwald, Marc - 2013

This paper deals with three aspects of spectacular oil price episodes such as the one witnessed in 2008. First, the concept of temporary explosiveness is proposed as an empirical method for capturing this type of behavior. The application of a recently proposed recursive unit root test shows...

Persistent link: https://www.econbiz.de/10009786017