Investment timing and learning externalities

DOI10.1016/j.jet.2003.11.006zbMath1079.91018OpenAlexW1992641029MaRDI QIDQ705847

Thomas Mariotti, Jean-Paul Décamps

Publication date: 16 February 2005

Published in: Journal of Economic Theory (Search for Journal in Brave)

Full work available at URL: https://doi.org/10.1016/j.jet.2003.11.006

zbMATH Keywords

Real optionsIncomplete informationDuopolyWar of attrition

Mathematics Subject Classification ID

Applications of game theory (91A80) Auctions, bargaining, bidding and selling, and other market models (91B26)

Related Items (24)

Competitive Investment with Bayesian Learning: Choice of Business Size and Timing ⋮ Safe marginal time of crude oil price via escape problem of econophysics ⋮ Hierarchical experimentation ⋮ Developing real option game models ⋮ Finite project life and uncertainty effects on investment ⋮ Learning to disagree in a game of experimentation ⋮ Strategic investment and learning with private information ⋮ Strategic investment evaluation ⋮ Hiding and herding in market entry ⋮ Learning from private and public observations of others' actions ⋮ Strategic investment with positive externalities ⋮ Strategic experimentation with private payoffs ⋮ Strategic investment under uncertainty: a synthesis ⋮ Super- and submodularity of stopping games with random observations ⋮ Optimal dividend policy and growth option ⋮ Investment timing and capacity decisions with time-to-build in a duopoly market ⋮ Learning and collusion in new markets with uncertain entry costs ⋮ Competitive experimentation with private information: the survivor's curse ⋮ Learning and payoff externalities in an investment game ⋮ Inefficiency of sponsored research ⋮ Optimal stopping problems in Lévy models with random observations ⋮ Learning about profitability and dynamic cash management ⋮ Strategic investment under incomplete information ⋮ Alertness, leadership, and nascent market dynamics

Cites Work

• Real options and preemption under incomplete information
• A Theory of Exit in Duopoly
• Learning and Capacity Expansion under Demand Uncertainty
• Sectoral Shocks, Learning, and Aggregate Fluctuations
• Information Revelation and Strategic Delay in a Model of Investment
• Asymmetric Auctions
• Strategic Experimentation
• Strategic Experimentation with Exponential Bandits
• Markov perfect equilibrium. I: Observable actions

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