Study of strategic investment option asymmetric exercise games equilibrium

This paper studies the value of real investment options and the strategic interaction of investment decision, and makes a systematical analysis of the executive strategic equilibrium rules of the optimal real options, under asymmetry on both revenue and cost of the two competing firms. The research shows that under the negative externalities, there are the preemptive equilibrium, in which mixed strategy equilibrium is included, the sequential equilibrium and the simultaneous equilibrium; and under the positive externalities, there are the sequential equilibrium and the simultaneous equilibrium. No matter whether there exist strategic interactions or not, the increase of uncertainty is always to raise the optimal threshold The last part of the paper provides numerical examples, which demonstrate the correctness of the theory.