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Product Innovation Strategic Investment Option Game

Posted on:2006-12-02Degree:MasterType:Thesis
Country:ChinaCandidate:Y M MengFull Text:PDF
GTID:2206360155958899Subject:Industrial Economics
Abstract/Summary:PDF Full Text Request
Option games theory is a new way in evaluating project investments and management decision, which can help make the scientific management decision for project investments with the ideology and modeling method of gaae theory, based on the option pricing theory. The paper introduces basic components of option games theory and main research tools, reviews original models of option games theory, expands the option games model of asymmetrical duopoly investment opportunity choice, adding the operating cost and original market constitute parameter, and discusses the optimal strategy of product innovation investment under competitive condition. At last, the paper compares option games method, real options method and traditional decision method on the theory, and testifies the conclusion with practical case. By above research, this paper demonstrates that the expanded model better meets the reality that can choose investment opportunity more reasonably based on evaluating investment project.
Keywords/Search Tags:option games, investment decision, real options, competition, operating cost
PDF Full Text Request
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