ERIM Research Clinic: Real Options and Games

Corporate finance and corporate strategy have long been seen as different sides of the same coin. Though both focus on the same broad problem, investment decision-making, the gap between the two sides--and between theory and practice--remains  large. New developments in corporate finance and related fields--in particular, real options and game theory-- help bridge this gap.  This seminar follows a problem-solving approach that synthesizes principles from real options theory, game theory, and strategy for the valuation  acquisitions. We explore new valuation techniques and illustrate these techniques in a wide variety of real life examples, ranging from going-private transactions, auctions, to buy-and-build acquisition strategies.

back ground literature (not required)

Smit J.T.J. and L. Trigeorgis “Strategic Investment: Real Options and Games”, Princeton University Press, 2004.

http://pup.princeton.edu/titles/7727.html