Analyzing Optimal Timing of Firm''''s R&D Investment under Incomplete Information in a Real Options and Game-theoretic Framework
不完全信息条件下企业R&D 最优投资时机的期权博弈分析

This paper examines the optimal timing of firm's R&D investment under uncertainty in a real options and game-theoretic framework.We incorporate incomplete information into the model by assuming that a firm does not know rival's investment threshold but know its distribution.We find that incomplete information restrains the competition from undermining the waiting option value and delays the firm's R&D investment.The optimal timing of firm's R&D investment is determined by its conjecture about rival's hazard rate: the more the hazard rate is,the earlier the firm invests.