Optimal Investment Decision of the Recycle Economic Projects Based on Game Options

Abstract:

In this paper, apply option game theory methods compensate for the inherent limitations of traditional NPV, derived the optimal preempt invest cycle economic projects critical value and the expression of the value function in under incomplete information oligopoly competition, give investors the preempt investment strategy rules, and analyze the relationship between critical value of investment and risks rate. Research shows that the larger face risk of being the first to competitors, the more investors will invest earlier. CLC：F424.7 Document code：A

• Periodical: Key Engineering Materials (Volumes 474-476)
• Pages: 315-319
• DOI: https://doi.org/10.4028/www.scientific.net/KEM.474-476.315
• Online since: April 2011
• Authors: Hua Wang, Ling Ling Chen
• Keywords: Game Option, Incomplete Information, Investment Decision, Oligopoly, Recycle Economy

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