STRATEGIC INVESTMENT IN TAIWAN CHAIN AND FRANCHISE STORES: A REAL OPTIONS AND GAME-THEORETIC APPROACH

Yin-Ching Jan

Global Journal of Business Research, 2011, vol. 5, issue 4, 25-37

Abstract: The purpose of this study is to examine and demonstrate the strategic investment decisions faced by Taiwan’s chain and franchise store enterprise. We show that incorporating an abandonment option to strategic timing in a game-theoretic real option approach makes the approach more complete and accurate. The results show that the chain and franchise store industry favors large companies, a finding consistent with economies of scale. The demonstration also provides practitioners a step-by-step guideline for analyzing dynamic investment strategy in the chain and franchise store industry.

Keywords: Abandonment option; Chain and franchise store; Game-theoretic real options. (search for similar items in EconPapers)
JEL-codes: G31 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n4-2011/GJBR-V5N4-2011-3.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ibf:gjbres:v:5:y:2011:i:4:p:25-37

Access Statistics for this article

Global Journal of Business Research is currently edited by Terrance Jalbert

More articles in Global Journal of Business Research from The Institute for Business and Finance Research
Bibliographic data for series maintained by Mercedes Jalbert ( this e-mail address is bad, please contact ).