Investment Opportunity and Investment Value under Symmetrical Duopoly Option Games

Abstract

This paper considers that two companies in the dual oligopoly market already exist in the market, and the two companies have the same project investment opportunities in the case of how to make investment decisions. Based on the model of Huisman and Kort, we considered that followers obtained discounted cash flow over a certain period of time. Leaders obtained monopoly profits, applied traditional methods of contingent claims analysis, and studied the investment value function and investment criticality of the follower and the leader.