Game Analysis For R&D Investment And Cooperation Of Enterprise Based On European Exchange Option

With the trend of economic globalization, information networking and knowledge industry, cooperation and innovation of investment has become an important way of corporate R&D investment, which greatly promotes the development of enterprise technology innovation. With the rapid development of economic globalization and science and technology, more and more enterprises are facing more complex uncertainty of R&D investment. It is more and more difficult for the enterprises to meet the development of the internally generated all the skills and knowledge required.Enterprise cooperation innovation in R&D has become a popular phenomenon. According to the related literature about R&D investment at home and abroad, R&D investment timing and strategy are important factors for technological progress and the development of enterprises, which are the core problem in the research of enterprises. Based on the option game theory, we will study the dynamic strategic interaction of enterprise cooperative innovation, to increase the enterprise innovation ability and level, and to promote the development of enterprise technology innovation. This research has important practical significance.As we know, enterprises have been facing with all kinds of uncertainties in R&D investment. Therefore, the paper will establish a game model of corporate R&D investment behavior based on European exchange options. The model is extended from two aspects. One is the expansion of options theory. This paper adopts the European exchange option theory to calculate the invest of corporate R&D investment under the uncertain environment. European exchange option is different from the general real option, which the former often assume that there are two uncertain environment factors in enterprise R&D investment, such as the market value and investment costs, which is beneficial to gain more detailed mathematical expression. The second is the extension of game theory. The cooperation of enterprise R&D investment can share resources, improve the efficiency of research and development, share the cost of R&D investment, reduce the risk of R&D investment. Therefore, the paper will discuss the problem of enterprises R&D investment based on strategy interaction.The main contents of the paper are as follows. The first chapter introduces the back ground, literature review, research content and innovation points etc. The second chapter expounds the basic framework of the model based on option game theory. The third chapter establishes the general real option model based on the enterprise R&D investment cooperation in a dynamic time. Then, we use the backward logic to analyze the risk dominant equilibrium of the model. What's more, we discuss two competing enterprise strategy and cooperate conditions of R&D investment under uncertain environment. Based on the general option game model and the uncertainties of enterprises' R&D investment, the fourth chapter formulates European exchange option game model to analyze the behaviors of two enterprise' R&D cooperate investment. The fifth chapter uses simulation analysis to discuss the European exchange option game model. The research results show that the strategy of enterprise R&D investment cooperation depends on market volatility, the cost of research and development, the "free rider" opportunity income, and the income of R&D investment cooperation. The sixth chapter is a summary of the paper, and prospects the research of the option game theory.