Sequential International Joint-Ventures and the Option to Choose
University of Paderborn Working Paper No. 83
37 Pages Posted: 30 Apr 2005 Last revised: 11 Dec 2007
Date Written: October 2005
The paper underscores the importance of modeling the dynamics of market entry and helps refine the application of real options in the alliance context by providing a closed-form solution in continuous time to value the overall strategic flexibility.
Note: Previously titled "Dynamic Market Entry and the Value of Flexibility in Transitional International Joint Ventures"
Keywords: Foreign direct investment, multinational enterprise, sequential investments, entry mode, international joint venture, real options
JEL Classification: D43, F23
Suggested Citation: Suggested Citation