A Note on the Welfare and Policy Implications of a Two-Period Real Option Game Under Imperfect Information

Congcong Wang, Yuhan Wang, Shanshan Chen, Shravan Luckraz and Bruno Antonio Pansera ()
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Congcong Wang: School of Finance, Zhejiang University of Finance and Economics, Hangzhou 310012, China
Yuhan Wang: School of Finance, Zhejiang University of Finance and Economics, Hangzhou 310012, China
Shanshan Chen: School of Finance, Zhejiang University of Finance and Economics, Hangzhou 310012, China
Bruno Antonio Pansera: Department of Law, Economics and Human Sciences & Decisions_Lab, University Mediterranea of Reggio Calabria, Via dell’Universitá 25, I-89124 Reggio Calabria, Italy

Games, 2025, vol. 16, issue 1, 1-7

Abstract: We show that the discrete real option game model proposed in the recent literature can be extended to the case of imperfect information. As a result, the model can cover a wider range of applications. However, we also observe that the effectiveness of implementing the subsidy is affected by the imperfect informational structure.

Keywords: welfare; policy implications; two-period real option game; imperfect information (search for similar items in EconPapers)
JEL-codes: C C7 C70 C71 C72 C73 (search for similar items in EconPapers)
Date: 2025
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