Research On Option Games Problems Of Business Investment

Option Games theory is a new discipline which is rapidly developing in the area of finance in recent years, it is the decision analysis method developed on the basis of the real option theory and game theory, which is considered as the new theory, new tool, and it is used to solve the existing problem of investment decisions under the condition of competition. This method is essentially combined the option game option pricing and game theory, and analysis the decisions made by multiplayer in the continuous time and under uncertainty. Based on these, the types of game options are summarized in this paper, and the focus of the research of options game are analyzed. The research on this subject has great practical significance under the background of gradual development of Chinese socialist market economy.Enterprises most will use the Bertrand model when they analyze the price decisions in oligopoly market. However, the traditional Bertrand model is complete information static duopoly model, with significant limitations, it does not apply to analyze the oligopoly price competition under incomplete information and dynamic market environment, the dynamic decision-making Bertrand price model and Bertrand complete information model of multi-oligopolies market have not been seen. So this paper put forward Bertrand model of complete information and dynamic decision, Bertrand complete information model of multi-oligopolies market, and Bertrand incomplete information model of multi-oligopolies market through analyzing the domestic oligopoly market and researching traditional Bertrand model deeply. And the Nash equilibrium of these new models is deduced., and verify the feasibility through examples.The current research results for option game on enterprise investment projects are most limited to the condition of complete information, and the research of option game under the condition of incomplete information are preemptive real option game and sharing real option game mostly. The research on privileged real option games is few, and has not formed a method which is effective and systemic. To solve this problem this paper systemic research the privileged real option games under the condition of incomplete information. And this paper research the equilibrium strategies of privileged real option games on the timing of investment and production strategies, based on these, the model of privileged real option games is established by the method of option pricing and dynamic game, this model includes the real option value of leaders and followers, present value and investment income threshold and other factors. And the feasibility of the model is showed through examples at last.