Investment decisions in finite-lived monopolies

摘要: Abstract This paper studies the value and optimal timing for investment in finite-lived monopolies, extending literature on real option games by considering cases of random certain-lived monopolies. Under these settings, firms face risk demonopolization, that can occur as a or certain event. We show new settings produce significantly different results when compared to canonical monopolistic duopolistic models. In monopoly, leader invests sooner than duopoly if there is being preempted, later monopoly role pre-assigned. random-lived entry occurs somewhere between cases. Higher uncertainty delays all