search query: @author Armada, M.R. / total: 2
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| Author: | Armada, M.R. Kryzanowski, L. Pereira, P.J. |
| Title: | Optimal investment decisions for two positioned firms competing in a duopoly market with hidden competitors |
| Journal: | European Financial Management
2011 : MAR, VOL. 17:2, p. 305-330 |
| Index terms: | strategic management competition duopoly markets investments decision making optimization costs models |
| Freeterms: | hidden competition |
| Language: | eng |
| Abstract: | Using a restrictive assumption embodied in the models in the current literature is that investment opportunities are semi-proprietary in that the two identified or positioned firms are guaranteed to hold at least the follower's position. The author extends the literature dealing with the option to invest in a duopoly market for a leader-follower setting. The paper expounds in following: i. more competition is realistically captured in the model by introducing the concept of hidden competitors so that the places in the market can be taken not only by positioned firm but also by these hidden competitors. ii. the value functions and the optimal triggers for the positioned firms differ materially in settings with(out) the presence of hidden rivals etc. |
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