- 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
Monopoly: Investment and Expansion Options
Monopoly: Investment and Expansion Options
- Chapter:
- (p.277) 9 Monopoly: Investment and Expansion Options
- Source:
- Competitive Strategy
- Author(s):
Benoît Chevalier-Roignant
Lenos Trigeorgis
- Publisher:
- The MIT Press
This chapter examines the situation faced by a firm with exclusive access to a market or enjoying insurmountable structural barriers enabling it to ignore strategic interactions by rivals when devising its investment strategy. It analyzes two options, investing in a new market and expanding an existing market. It considers both lump-sum and incremental capacity expansion models.
Keywords: investment strategy, monopolist, capacity expansion, market expansion
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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
