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Export Reference (APA)
Barbosa, L., Rodrigues, A. & Sardinha, A. (2023). Strategic investment and subsidies within an asymmetric duopoly under uncertainty. The 26th Annual International Real Options Conference.
Export Reference (IEEE)
L. S. Barbosa et al.,  "Strategic investment and subsidies within an asymmetric duopoly under uncertainty", in The 26th Annu. Int. Real Options Conf., 2023
Export BibTeX
@misc{barbosa2023_1715919782764,
	author = "Barbosa, L. and Rodrigues, A. and Sardinha, A.",
	title = "Strategic investment and subsidies within an asymmetric duopoly under uncertainty",
	year = "2023",
	url = "https://www.realoptions.org/"
}
Export RIS
TY  - CPAPER
TI  - Strategic investment and subsidies within an asymmetric duopoly under uncertainty
T2  - The 26th Annual International Real Options Conference
AU  - Barbosa, L.
AU  - Rodrigues, A.
AU  - Sardinha, A.
PY  - 2023
UR  - https://www.realoptions.org/
AB  - This paper analyzes the effect of revenue and investment subsidies on strategic in- vestment and optimal investment timing within an asymmetric duopoly, whereby two heterogeneous firms have different maximum capacities, marginal costs, and invest- ment costs. Within this market, a firm optimally decides whether to be a leader or a follower and the optimal quantity to produce. In addition, firms can be active or idle after investment. An interesting finding from our analysis is that the subsidies accelerate investment when a market has an incumbent firm and the other firm has the option to invest. When both firms have the option to invest, we observe differ- ent equilibria and investment triggers’ slopes as the revenue and investment subsidies change.
ER  -