Investment Decisions Under Hidden Competition
10 Pages Posted: 4 Mar 2013
Date Written: September 2, 2009
Abstract
We present simple 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.
Keywords: hidden competition, duopolies, real options
JEL Classification: G31, D82
Suggested Citation: Suggested Citation
Pereira, Paulo and Rocha Armada, Manuel José, Investment Decisions Under Hidden Competition (September 2, 2009). Available at SSRN: https://ssrn.com/abstract=2227316 or http://dx.doi.org/10.2139/ssrn.2227316
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