Preemptive Investment under Uncertainty

Steg J-H (2015) Center for Mathematical Economics Working Papers; 549.
Bielefeld: Center for Mathematical Economics.

Diskussionspapier | Veröffentlicht| Englisch
 
Download
OA
Abstract / Bemerkung
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 dynamic nature and exploits only its economic structure. In particular, the determination of equilibria with preemption is reduced to solving a single class of constrained stopping problems. The general results are applied to typical state-space models from the literature, to point out common deficits in equilibrium arguments and to suggest alternative equilibria that are Pareto improvements.
Stichworte
optimal stopping.; equilibrium; Preemption; irreversible investment; real options
Erscheinungsjahr
2015
Band
549
Seite(n)
37
ISSN
0931-6558
Page URI
https://pub.uni-bielefeld.de/record/2785971

Zitieren

Steg J-H. Preemptive Investment under Uncertainty. Center for Mathematical Economics Working Papers. Vol 549. Bielefeld: Center for Mathematical Economics; 2015.
Steg, J. - H. (2015). Preemptive Investment under Uncertainty (Center for Mathematical Economics Working Papers, 549). Bielefeld: Center for Mathematical Economics.
Steg, J. - H. (2015). Preemptive Investment under Uncertainty. Center for Mathematical Economics Working Papers, 549, Bielefeld: Center for Mathematical Economics.
Steg, J.-H., 2015. Preemptive Investment under Uncertainty, Center for Mathematical Economics Working Papers, no.549, Bielefeld: Center for Mathematical Economics.
J.-H. Steg, Preemptive Investment under Uncertainty, Center for Mathematical Economics Working Papers, vol. 549, Bielefeld: Center for Mathematical Economics, 2015.
Steg, J.-H.: Preemptive Investment under Uncertainty. Center for Mathematical Economics Working Papers, 549. Center for Mathematical Economics, Bielefeld (2015).
Steg, Jan-Henrik. Preemptive Investment under Uncertainty. Bielefeld: Center for Mathematical Economics, 2015. Center for Mathematical Economics Working Papers. 549.
Alle Dateien verfügbar unter der/den folgenden Lizenz(en):
Copyright Statement:
This Item is protected by copyright and/or related rights. [...]
Volltext(e)
Access Level
OA Open Access
Zuletzt Hochgeladen
2019-09-06T09:18:34Z
MD5 Prüfsumme
2c698a9fc04188672804f019dfd094c7

Export

Markieren/ Markierung löschen
Markierte Publikationen

Open Data PUB

Suchen in

Google Scholar