Investment under Uncertainty, Coalition Spillovers and Market Evolution in a Game Theoretic Perspective (Theory and Decision Library C (35))

"Two crucial aspects of economic reality are uncertainty and dynamics. In this book, new models and techniques are developed to analyse economic dynamics in an uncertain environment. In the first part, investment decisions of firms are analysed in a framework where imperfect information regarding the investment's profitability is obtained randomly over time. In the second part, a new class of cooperative games, spillover games, is developed and applied to a particular investment problem under uncertainty: mergers. In the third part, the effect of bounded rationality on market evolution is analysed for oligopolistic competition and incomplete financial markets."--BOOK JACKET. Introduction....Pages 1-19 Mathematical Preliminaries....Pages 21-51 Front Matter....Pages 52-52 The Effect of Information Streams on Capital Budgeting Decisions....Pages 55-76 Symmetric Equilibria in Game Theoretic Real Option Models....Pages 77-109 The Effects of Information on Strategic Investment....Pages 111-139 Front Matter....Pages 140-140 Spillovers and Strategic Cooperative Behaviour....Pages 143-164 The Timing of Vertical Mergers Under Uncertainty....Pages 165-176 Front Matter....Pages 177-177 Multi-Level Evolution in Cournot Oligopoly....Pages 179-195 Evolution of Conjectures in Cournot Oligopoly....Pages 197-216 Bounded Rationality in a Finance Economy with Incomplete Markets....Pages 217-236

two Crucial Aspects Of Economic Reality Are Uncertainty And Dynamics. In This Book, New Models And Techniques Are Developed To Analyse Economic Dynamics In An Uncertain Environment. In The First Part, Investment Decisions Of Firms Are Analysed In A Framework Where Imperfect Information Regarding The Investment's Profitability Is Obtained Randomly Over Time. In The Second Part, A New Class Of Cooperative Games, Spillover Games, Is Developed And Applied To A Particular Investment Problem Under Uncertainty: Mergers. In The Third Part, The Effect Of Bounded Rationality On Market Evolution Is Analysed For Oligopolistic Competition And Incomplete Financial Markets.