- 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
An Integrative Approach to Strategy: Option Games
An Integrative Approach to Strategy: Option Games
- Chapter:
- (p.195) 6 An Integrative Approach to Strategy: Option Games
- Source:
- Competitive Strategy
- Author(s):
Benoît Chevalier-Roignant
Lenos Trigeorgis
- Publisher:
- The MIT Press
This chapter first discusses how option games can provide useful insights to management faced with conflicting strategic choices. It highlights two issues: optimal investment timing and the trade-off between flexibility and commitment. It then provides a simple illustration to help explain the logic behind option games. Next, it discusses applications to R&D and the mining/chemicals industry.
Keywords: option games analysis, optimal investment timing, commitment, flexibility, mining industry, chemicals industry
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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