Acquisitions Strategies as Option Games

This paper draws on research that integrates real options with game theory for a forthcoming book that I co-authored with Lenos Trigeorgis entitled "Investment Strategy: Options and Games," (Princeton University Press, 2002). The examples mentioned in this paper have the sole purpose of explaining the theoretical concepts. I would like to thank Roelof O. Prins for useful insights. I am further indebted to Janice Willett, Don Chew, Ward van den Berg, and Hans Haanappel for their comments. The views expressed in this paper and any potential mistakes are, of course, my own.