Dynamic R&D Competition under Uncertainty and Strategic Disclosure

Quantifying the Strategic Option Value of Technology Investments

We develop an integrated real options and industrial organization framework to quantify the strategic option value of technology investments. Strategic investments (e.g., R&D, capacity expansion or strategic acquisitions) are difficult to analyze based on standard approaches. Yet, it is these decisions that determine a firm’s competitive success in a changing technological and competitive lands...

Strategic Collaboration in Dynamic R&D Competitions

I develop a model to study the strategic decision to collaborate in a multi-stage R&D race by a technological leader and a follower. I examine how individual decisions are affected by the strength and the breadth of the Intellectual Property (IP) regime in place, where the breadth defines the stages in which the innovator is granted IP rights, and the strength is a measure of the bargaining pow...

Foreign Investment as Main Factor for Successful Funds and Its Effect on Trade Balance Strategic Technology Adoption under Technological Uncertainty

Combination of real options and game-theoretic approach in investment analysis

Investments in technology create a large amount of capital investments by major companies. Assessing such investment projects is identified as critical to the efficient assignment of resources. Viewing investment projects as real options, this paper expands a method for assessing technology investment decisions in the linkage existence of uncertainty and competition. It combines the game-theore...

Strategic Relationships between Buyers and Sellers under Uncertainty

We analyze strategic relationships between buyers and sellers in markets with relationship-specific costs and exogenous dynamic uncertainty by investigating the scenario wherein a representative buyer trades with two sellers in a different country. We show that under exchange rate uncertainty, relationship-specific costs may either raise or lower competition and the level of prices in long-term...