Investment under regime uncertainty: Impact of competition and preemption

• Autores: Katsumasa Nishide, Kyoko Yagi
• Localización: International journal of industrial organization, ISSN 0167-7187, Vol. 45, Nº. 0, 2016, págs. 47-58
• Idioma: inglés
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• Resumen

  • Abstract In this study, we analyze the investment-timing problem and introduce a model of two firms competing for investment preemption, each of which knows in advance the time at which the economic condition that will have an impact on the investment changes. We qualitatively show how two firms strategically optimize their investment timing, taking into account competition and preemption.