On the Tacit Collusion Equilibria of an Investment Timing Game

The investment timing game in petroleum production: An econometric model

Physica A Statistical Mechanics and its Applications ◽

10.1016/j.physa.2005.02.067 ◽

2005 ◽

Vol 355 (1) ◽

pp. 62-68

Author(s):

C.-Y. Cynthia Lin

Keyword(s):

Econometric Model ◽

Petroleum Production ◽

Investment Timing ◽

Timing Game

Strategic Decision-Making with Information and Extraction Externalities: A Structural Model of the MultiStage Investment Timing Game in Offshore Petroleum Production

Review of Economics and Statistics ◽

10.1162/rest_a_00319 ◽

2013 ◽

Vol 95 (5) ◽

pp. 1601-1621 ◽

Cited By ~ 13

Author(s):

C.-Y. Cynthia Lin

Keyword(s):

Decision Making ◽

Structural Model ◽

Strategic Decision ◽

Strategic Decision Making ◽

Petroleum Production ◽

Investment Timing ◽

Timing Game ◽

Offshore Petroleum

Investment Timing Game Under Asymmetric Duopoly

SSRN Electronic Journal ◽

10.2139/ssrn.586984 ◽

2004 ◽

Author(s):

Yongqiang Chu ◽

Tien Foo Sing

Keyword(s):

Investment Timing ◽

Timing Game ◽

Asymmetric Duopoly

The Study on Investment Timing of Transportation Infrastructure Constructions in Cities

Traffic And Transportation Studies (2002) ◽

10.1061/40630(255)200 ◽

2002 ◽

Author(s):

Zhuangzhi Sun ◽

Siji Hu ◽

Jun Zhu ◽

Hongfei Jia

Keyword(s):

Transportation Infrastructure ◽

Investment Timing

Tacit Collusion in Real-Time U.S. Electricity Auctions

SSRN Electronic Journal ◽

10.2139/ssrn.1938757 ◽

2011 ◽

Author(s):

Richard M. Benjamin

Keyword(s):

Real Time ◽

Tacit Collusion ◽

Electricity Auctions

Investment Timing with Costly Search for Financing

SSRN Electronic Journal ◽

10.2139/ssrn.3000080 ◽

2017 ◽

Author(s):

Samuel Antill

Keyword(s):

Investment Timing

Tacit Collusion of Partial Cross Ownership Under Cournot Model

SSRN Electronic Journal ◽

10.2139/ssrn.3306203 ◽

2018 ◽

Author(s):

Zheng Gong

Keyword(s):

Tacit Collusion ◽

Cournot Model ◽

Cross Ownership

Investment Timing Theory – A Single Firm Model

SSRN Electronic Journal ◽

10.2139/ssrn.3559648 ◽

2020 ◽

Author(s):

Sandeep Rao

Keyword(s):

Investment Timing ◽

Firm Model

Long-Lived Consumers, Intertemporal Bundling, and Tacit Collusion

SSRN Electronic Journal ◽

10.2139/ssrn.958378 ◽

2009 ◽

Cited By ~ 1

Author(s):

James D. Dana ◽

Yuk-fai Fong

Keyword(s):

Tacit Collusion

IRREVERSIBLE INVESTMENT, OPERATING FLEXIBILITY, AND TIME LAGS

Asia Pacific Journal of Operational Research ◽

10.1142/s0217595910002685 ◽

2010 ◽

Vol 27 (02) ◽

pp. 271-286 ◽

Cited By ~ 2

Author(s):

RYUTA TAKASHIMA ◽

MAKOTO GOTO ◽

MOTOH TSUJIMURA

Keyword(s):

Time Lag ◽

Peak Load ◽

Price Volatility ◽

Optimal Investment ◽

Capacity Expansion ◽

Fixed Cost ◽

Time Lags ◽

Investment Timing ◽

Power Company ◽

Optimal Investment Problem

We consider an optimal investment problem when a firm such as an electric power company has the operational flexibility to expand and contract capacity with fixed cost. This problem is formulated as an impulse control problem combined with optimal stopping. Consequently, we obtain optimal investment timing, optimal capacity expansion and contraction timing, and the investment value. We also show investment, capacity expansion and contraction rule are influenced by the price volatility and the initial capacity is also influenced by the ratio between base-load plant and peak-load plant. In addition, we investigate how time lag between investment and operation influences the investment rule.