Strategic Investment: Real Options and Games (Hardcover)

~ (Author), Lenos Trigeorgis (Author)

Editorial Reviews

Review

Strategic Investment: Real Options and Games provides a powerful synthesis of modern corporate finance and corporate strategy. Its arrival could not be more timely for the practice of strategic management. Cumulative developments in finance science and innovations in financial technology over the past three decades have had a profound impact on financial markets and financial institutions globally. However, their influence on the practice of strategic corporate finance has been far more limited. That is changing and as a consequence one can anticipate significant opportunities for innovation in strategic advice and its implementation in the impending future. Who better to prepare us for it than Han Smit and Lenos Trigeorgis, with their combined experiences as serious academic researchers, skilled consultants, and seasoned teachers? Their carefully constructed text uses actual case settings and hypothetical situations to exemplify the power of combining real options and game theory to clarify and quantify strategic analysis of the firm. Whether MBA student or seasoned professional, the reader is in for a treat: Bon Appetit!
(Robert C. Merton, Harvard Business School and Nobel Laureate in Economic Sciences )

Product Description

Corporate finance and corporate strategy have long been seen as different sides of the same coin. Though both focus on the same broad problem, investment decision-making, the gap between the two sides--and between theory and practice--remains embarrassingly large. This book synthesizes cutting-edge developments in corporate finance and related fields--in particular, real options and game theory--to help bridge this gap. In clear, straightforward exposition and through numerous examples and applications from various industries, Han Smit and Lenos Trigeorgis set forth an extended valuation framework for competitive strategies.

The book follows a problem-solving approach that synthesizes ideas from game theory, real options, and strategy. Thinking in terms of options-games can help managers address questions such as: When is it best to invest early to preempt competitive entry, and when to wait? Should a firm compete in R&D or adopt an accommodating stance? How does one value growth options or infrastructure investments? The authors provide a wide range of valuation examples, such as acquisition strategies, R&D investment in high-tech sectors, joint research ventures, product introductions in consumer electronics, infrastructure, and oil exploration investment.

Representing a major step beyond standard real options or strategy analysis, and extending the power of real options and strategic thinking in a rigorous fashion, Strategic Investment will be an indispensable guide and resource for corporate managers, MBA students, and academics alike.

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Product Details

• Hardcover: 472 pages
• Publisher: Princeton University Press; illustrated edition edition (July 6, 2004)
• Language: English
• ISBN-10: 0691010390
• ISBN-13: 978-0691010397
• Product Dimensions: 9.3 x 6.2 x 1.7 inches
• Shipping Weight: 1.9 pounds (View shipping rates and policies)
• Average Customer Review: 4.5 out of 5 stars  See all reviews (2 customer reviews)
• Amazon.com Sales Rank: #690,100 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

4 of 5 people found the following review helpful:

5.0 out of 5 stars Right book for executives, March 20, 2007

By	Douglas A. I. Gilson "douglas gilson" (Brazil, Rio de Janeiro) - See all my reviews (REAL NAME)

I develop practical Game Theory Simulation Models for strategy formulations, experiments, and selection. This book provided me with a practical guide how to use Game Theory and Real Options for strategic analysis.
The use of Real Option with Game Theory was new for me.
Well written this book it is a must for executives.
[...]

0 of 1 people found the following review helpful:

4.0 out of 5 stars A complete guide for Real Option, December 16, 2008

By	Stefano Angioletti (Belo Horizonte, Brazil) - See all my reviews (REAL NAME)

In Strategic Investment: Real Options and Games, Smit and Trigerogis developed a complete guide on how to develop valuation studies based on Real Option Theory and Game Theory. The approach is affordable for graduate and post graduate students or even for analyst locking for orientation about valuation and investment