Benoît Chevalier-Roignant and Lenos Trigeorgis
- Published in print:
- 2011
- Published Online:
- August 2013
- ISBN:
- 9780262015998
- eISBN:
- 9780262298711
- Item type:
- book
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262015998.001.0001
- Subject:
- Economics and Finance, Econometrics
Corporate managers who face both strategic uncertainty and market uncertainty confront a classic trade-off between commitment and flexibility. They can stake a claim by making a large capital ...
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Corporate managers who face both strategic uncertainty and market uncertainty confront a classic trade-off between commitment and flexibility. They can stake a claim by making a large capital investment today, influencing their rivals’ behavior; or they can take a “wait and see” approach to avoid adverse market consequences tomorrow. This book describes an emerging paradigm that can quantify and balance commitment and flexibility—“option games” by which the decision-making approaches of real options and game theory can be combined. The book first discusses prerequisite concepts and tools from basic game theory, industrial organization, and real options analysis, bringing important materials and ideas together into a unified framework. It then presents the new approach in discrete time and later in continuous time, beginning with the building blocks of the basic ideas and tools and culminating in richer theoretical analyses.Less
Corporate managers who face both strategic uncertainty and market uncertainty confront a classic trade-off between commitment and flexibility. They can stake a claim by making a large capital investment today, influencing their rivals’ behavior; or they can take a “wait and see” approach to avoid adverse market consequences tomorrow. This book describes an emerging paradigm that can quantify and balance commitment and flexibility—“option games” by which the decision-making approaches of real options and game theory can be combined. The book first discusses prerequisite concepts and tools from basic game theory, industrial organization, and real options analysis, bringing important materials and ideas together into a unified framework. It then presents the new approach in discrete time and later in continuous time, beginning with the building blocks of the basic ideas and tools and culminating in richer theoretical analyses.
David Barno and Nora Bensahel
- Published in print:
- 2020
- Published Online:
- August 2020
- ISBN:
- 9780190672058
- eISBN:
- 9780190937348
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780190672058.003.0010
- Subject:
- Political Science, International Relations and Politics
This chapter argues that it will be increasingly difficult for the US military to predict and adapt to the character of its future conflicts, because of growing strategic uncertainty, the addition of ...
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This chapter argues that it will be increasingly difficult for the US military to predict and adapt to the character of its future conflicts, because of growing strategic uncertainty, the addition of two new domains of warfare (outer space and cyberspace), and the scale and increasing speed of change. The gap between predicted wars and actual wars—what the authors call the adaptation gap—is likely to continue to grow. The adaptability that the US military will need to bridge that growing gap will become ever more important, even as it becomes ever more difficult.Less
This chapter argues that it will be increasingly difficult for the US military to predict and adapt to the character of its future conflicts, because of growing strategic uncertainty, the addition of two new domains of warfare (outer space and cyberspace), and the scale and increasing speed of change. The gap between predicted wars and actual wars—what the authors call the adaptation gap—is likely to continue to grow. The adaptability that the US military will need to bridge that growing gap will become ever more important, even as it becomes ever more difficult.
