An Analysis of Technology Innovation Investment based on Options Game Theory
Traditional investment analysis methods for lack of flexibility cannot adapt to changing realities very well, so real options game theory which takes into account uncertainty and competition is introduced. This paper establishes an analysis model that incorporates real options and game theory to discuss investment strategies about technology innovation projects under three uncertain and competitive conditions involving two enterprises. According to different conditions, three investment ways are identified so that the enterprises investment values and their optimal investment thresholds are theoretically calculated and compared. The results show that fluctuation of the project value can lead to three sorts of options game equilibrium and further three investment strategies, which are the simultaneous investment strategy, the sequential investment strategy and the simultaneous delay investment strategy.
options game technology innovation investment strategy
Li Kun Guo De
School of Management Northwestern Polytechnical University Xian, Shaanxi, China
国际会议
成都
英文
245-247
2010-07-09（万方平台首次上网日期，不代表论文的发表时间）