Abstract The Real Options (RO) approach is a powerful tool for decision analysis in dynamic
or non-stationary stochastic settings, as it considers the value of decision flexibility under …

From the publisher. Corporate managers who face both strategic uncertainty and market
uncertainty confront a classic trade-off between commitment and flexibility. They can stake a …

In order to encourage manufacturers to replace traditional high-emission equipment with
new ones powered by green technology, alternative regulations, notably equipment subsidy …

Investment is a central theme in economics, finance, and operational research. Traditionally,
the focus of analysis has been either on assessing the value of flexibility (investment under …

We investigate the optimal strategies for firms to invest in their suppliers when the benefits of
such investments can spillover to other firms who also source from the same suppliers. We …

Motivated by the challenges faced by firms entering an unknown market, we study a
strategic investment problem in a duopoly setting. The favorableness of the market is …

We investigate the interplay between learning effects and externalities in the problem of
competitive investments with uncertain returns. We examine a game theoretic duopoly …

Existing models show that herding in decisions can cause significant information loss,
inferior information aggregation, and impaired decision making. However, we show that in a …

We study a stochastic version of Fudenberg–Tirole's preemption game. Two firms
contemplate entering a new market with stochastic demand. Firms differ in sunk costs of …

For nearly two decades, ocean carriers have been locked in an arms race for capacity,
which has led to huge losses for many and even bankruptcy for some. We investigate the …