Strategic investment models, though popular in the theoretical literature, have rarely been tested empirically. This paper develops a model of strategic investment in inpatient procedure markets, which are well-suited to empirical tests of this behavior. Potential entrants are easy to identify in such markets, enabling the researcher to accurately estimate the entry threat faced by different in...

The paper illustrates the use of real options and game theory principles to value prototypical investment projects and capture important competitive/strategic dimensions in a step-by-step analysis of investment decisions (options) under uncertainty. It first illustrates the application of real options principles to a mining concession and to an R&D program. It then provides examples from innova...

The paper deals with the tradeoffs between the option value of managerial flexibility and the strategic value of early commitment in a dynamic competitive environment. It departs from the standard real options optimization problem (game against nature) to model strategic games against competition. It thus provides an integration of real options valuation with game-theoretic principles that enab...

This study extends Weill's (Do computers payow ? A study of information technology investments and manufacturing performance. Washington, DC: International Center for Information Technologies, Information Systems Research, 3(4), 307}333) work by categorizing IT investment into four types of management objectives: transactional, strategic, informational and threshold. The relationships between t...

This paper employ hand-collected data concerning foreign strategic investment and corporate governance in the Chinese banking sector, we examine whether foreign strategic investment improve the corporate governance of Chinese banks and whether corporate governance improve performance of Chinese banks. We found that foreign strategic investment increases the binding force for top three sharehold...