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. In Competitive Strategy, Benoit                  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, bringing important materials and                  ideas together into a unified framework. They then present the new approach in                  discrete time and later in continuous time, beginning with the building blocks of                  the basic ideas and tools and culminating in richer theoretical analyses. 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. The                  book will be of interest to scholars, students, and academically trained practicing                  managers interested in applying these ideas.

Competitive Strategy: Options and Games PDF

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