| Ordinarily discounted cash flow method has been unable to correctly esti-mate the enterprise R&D (research & develop) programme, due to the uncer-tainty investment. Researchers began to apply financial option theory to R&D programme. That is we called real option.This article introduced us about two parts:the first is the real options theory applied in R&D programme, the second is about option game model,which an-alyze optional investment strategy under monopoly market and duopoly model. In the first part, we take two method to price the real option-dynamic program-ming and contingent claim analysis. The latter inherits Black-Scholes Model, which replicated the asset by a constructed portfolio. Contingent claim analysis is ordinary method in analyzing monopoly market and duopoly model.In the first part, we just ignore other uncertainty factors in the market, which the second part complemented. I began discussing the relationship between op-tional investment opportunity and industry equilibrium under monopoly mar-ket. Then I considered the interaction between two enterprise tactical strategies. Moveover, I would show how the first-mover advantages effect the option game pricing.In this differential equation model, deduced from contingent claim analysis, we gradually introduce new factor or change the assumption to master it better. |
