- Title Pages
- Glossary
- Symbols
- Foreword
- Preface
-
1 The Strategy Challenge -
2 Strategic Management and Competitive Advantage -
3 Market Structure Games: Static Approaches -
4 Market Structure Games: Dynamic Approaches -
5 Uncertainty, Flexibility, and Real Options -
II Option Games: Discrete-Time Analysis -
6 An Integrative Approach to Strategy: Option Games -
7 Option to Invest -
8 Innovation Investment in Two-Stage Games -
III Option Games: Continuous-Time Models -
9 Monopoly: Investment and Expansion Options -
10 Oligopoly: Simultaneous Investment -
11 Leadership and Early-Mover Advantage -
12 Preemption versus Collaboration in a Duopoly -
13 Extensions and Other Applications -
Appendix: Basics of Stochastic Processes - [UNTITLED]
- References
- Index
Uncertainty, Flexibility, and Real Options
Uncertainty, Flexibility, and Real Options
- Chapter:
- (p.153) 5 Uncertainty, Flexibility, and Real Options
- Source:
- Competitive Strategy
- Author(s):
Benoît Chevalier-Roignant
Lenos Trigeorgis
- Publisher:
- The MIT Press
This chapter discusses the strategy formulation challenges encountered by firms when the underlying market is uncertain. Motivated by the uncertainty faced by European electric utilities, it discusses how real options analysis can be used to analyze such situations, value strategic options, and optimally chose among them. It also considers discrete-time and continuous-time tools for the pricing of embedded real options.
Keywords: strategic investment, uncertain market, electric utilities, options analysis
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- Title Pages
- Glossary
- Symbols
- Foreword
- Preface
-
1 The Strategy Challenge -
2 Strategic Management and Competitive Advantage -
3 Market Structure Games: Static Approaches -
4 Market Structure Games: Dynamic Approaches -
5 Uncertainty, Flexibility, and Real Options -
II Option Games: Discrete-Time Analysis -
6 An Integrative Approach to Strategy: Option Games -
7 Option to Invest -
8 Innovation Investment in Two-Stage Games -
III Option Games: Continuous-Time Models -
9 Monopoly: Investment and Expansion Options -
10 Oligopoly: Simultaneous Investment -
11 Leadership and Early-Mover Advantage -
12 Preemption versus Collaboration in a Duopoly -
13 Extensions and Other Applications -
Appendix: Basics of Stochastic Processes - [UNTITLED]
- References
- Index