Strategic Investment with Three Asymmetric Firms

Sunyoung Ko and Takashi Shibata ()
Additional contact information
Sunyoung Ko: Graduate School of Social Sciences, Tokyo Metropolitan University, 1-1 Minami-Osawa, Hachioji, Tokyo 192-0397, Japan

Chapter 6 in Recent Advances in Financial Engineering 2011, 2012, pp 97-110 from World Scientific Publishing Co. Pte. Ltd.

Abstract: AbstractThis paper examines the strategic investment timing problem in the case of three firms with different cost structures. We extend the strategic investment timing problem by allowing the number of asymmetric firms to range from two to three. Surprisingly, we show that the firm with the lowest cost structure is not always the first investor in the investment timing problem with three asymmetric firms. The mechanism of strategies in the case with three asymmetric firms is quite different from that with two asymmetric firms.

Keywords: Financial Engineering; Mathematical Finance; Money & Banking; Risk Management; Real Option; Corporate Finance; Computational Finance (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789814407335_0006 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789814407335_0006 (text/html)
Ebook Access is available upon purchase.

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:wsi:wschap:9789814407335_0006

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().