A simulation approach to Signalling Games in Real Options Model
| Název práce v češtině: | |
|---|---|
| Název v anglickém jazyce: | A simulation approach to Signalling Games in Real Options Model |
| Klíčová slova: | Real Options Theory, Signalling Games, Game Theory, Simulation |
| Akademický rok vypsání: | 2016/2017 |
| Typ práce: | diplomová práce |
| Jazyk práce: | angličtina |
| Ústav: | Institut ekonomických studií (23-IES) |
| Vedoucí / školitel: | prof. Ing. Karel Janda, Dr., Ph.D., M.A. |
| Řešitel: | skrytý - zadáno vedoucím/školitelem |
| Datum přihlášení: | 09.11.2016 |
| Datum zadání: | 09.11.2016 |
| Předběžná náplň práce v anglickém jazyce |
| The concept of a real options signalling game in financial framework is introduced by Grenadier and Malenko (2011) with Morellec and Schurhoff (2011) including the outsiders’ beliefs in the payoff function of agents and thus formulating a pure example of a real options signalling game.
Takahiro Watanabe (2012) presents the concept in form of an investment game. This approach appears to be suitable for empirical testing. The premise of the model is that the signalling incentives distort the timing of exercise, such that a high-demand incumbent may strategically delay the timing of the investment to hide the information of the level of the demand and enter the market at the timing of a low-demand incumbent. Every one of this papers is purely theoretical in nature. It is, however, necessary to start implementing theoretical concepts of signalling in real options, otherwise the concept would be gradually abandoned in the future. Testing the models using simulated data could be the first step towards implementing them using real-life data. In the rapidly expanding field of signalling in real options theory I will summarize the existing literature for the purpose of empirical analysis. Bearing in mind that much of strategic investment theory lies in practical utilization, we may expect more attempts to yield real-world advantage from these theoretical concepts. Applying theory in everyday transactions is necessary for the concept of real options to be able to further advance. Even though some of the theoretical implications are interesting, we can not expect the theory to advance indefinitely without the promise of being applicable in real life. Conducting simulations to test the strength of several promising models could help future researchers decide to pursue the subject further. The technique used may also be easily used on different models. |