Article ID Journal Published Year Pages File Type
482921 European Journal of Operational Research 2008 17 Pages PDF
Abstract

We investigate the effect of incomplete information in a model where a start-up with a unique idea and technology pioneers a new market but will eventually be expelled from the market by a large firm’s subsequent entry. We evaluate the start-up’s loss due to incomplete information about the large firm’s behavior. We clarify conditions under which the start-up needs more information about the large firm. The proposed method of evaluating the loss due to incomplete information could also be applied to other real options models involving incomplete information.

Related Topics
Physical Sciences and Engineering Computer Science Computer Science (General)
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