Competition for Investment Opportunities: Game Theory Reveals Winners and Losers!
The article presents a game model where multiple firms compete for a single investment opportunity, with the first firm to invest gaining exclusive rights. The model combines game theory and the theory of irreversible investment under uncertainty. The study explores how firms' actions impact each other's investment decisions and identifies the Nash equilibrium under different assumptions about firms' knowledge of each other's project valuations. The research uses a telecommunications network as an example to illustrate the model.