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Investment decisions under hidden competition

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Bibliographic Details
Summary:We present a model adequate for investment decisions in duopolies under total hidden competition. In this competitive context all potential entrants remain unrevealed until they decide to move into the market. The value-functions and the optimal entry thresholds are derived.
Main Authors:Pereira, Paulo Jorge
Other Authors:Armada, Manuel José da Rocha
Subject:Hidden competition Duopolies Real options
Year:2013
Country:Portugal
Document type:article
Access type:restricted access
Associated institution:Universidade do Minho
Language:English
Origin:RepositóriUM - Universidade do Minho
Description
Summary:We present a model adequate for investment decisions in duopolies under total hidden competition. In this competitive context all potential entrants remain unrevealed until they decide to move into the market. The value-functions and the optimal entry thresholds are derived.