Competitive Strategy: Options and Games - Hardcover

Chevalier-roignant, Benoit; Trigeorgis, Lenos

Hardcover

ISBN 10: 0262015994 ISBN 13: 9780262015998

Publisher: Mit Pr, 2011

Synopsis

Corporate managers who face both strategic uncertainty and market uncertainty confront a classic trade-off between commitment and flexibility. They can stake a claim by making a large capital investment today, influencing their rivals' behavior, or they can take a "wait and see" approach to avoid adverse market consequences tomorrow. InCompetitive Strategy, Benoît Chevalier-Roignant and Lenos Trigeorgis describe an emerging paradigm that can quantify and balance commitment and flexibility, "option games," by which the decision-making approaches of real options and game theory can be combined.

The authors first discuss prerequisite concepts and tools from basic game theory, industrial organization, and real options analysis, and then present the new approach in discrete time and later in continuous time. Their presentation of continuous-time option games is the first systematic coverage of the topic and fills a significant gap in the existing literature.

Competitive Strategy provides a rigorous yet pragmatic and intuitive approach to strategy formulation. It synthesizes research in the areas of strategy, economics, and finance in a way that is accessible to readers not necessarily expert in the various fields involved.

About this title

About the Author

Benoit Chevalier-Roignant has been an industry consultant and holds a PhD from WHU in Germany. Lenos Trigeorgis is the Bank of Cyprus Chair Professor of Finance in the School of Economics and Management at the University of Cyprus and Visiting Professor of Finance at the London Business School. He is the author of Real Options (MIT Press, 1995), Strategic Investment, and other books.

Edition details

• Publisher: Mit Pr
• Publication date: 2011
• ISBN 10: 0262015994
• ISBN 13: 9780262015998
• Binding: Hardcover
• Language: English
• Number of pages: 488