Research on the Timing of Enterprises Upgrading Project in the Competitive Condition Based on Game Options

摘要

With the constraining of resources and the environment both home and abroad, it is imminent for domestic firms to accelerate the transformation and upgrading of production. A theoretical model on timing of upgrading project in competitive condition was built up by means option game. Results show that: multiple market random shocks of demand affect is the key factor in timing of upgrading project. As the market demand fluctuation is large, the enterprises will increase the threshold of upgrading project. Conversely, enterprises will stop waiting, and implementing the upgrading project.