Investment strategies in the Brazilian industry of aluminum cans: an analysis in the context of real options games
Autor(a) principal: | |
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Data de Publicação: | 2015 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | eng por |
Título da fonte: | Revista Brasileira de Gestão de Negócios (Online) |
Texto Completo: | https://rbgn.fecap.br/RBGN/article/view/2253 |
Resumo: | Objective – The purpose of this article is to analyze the impact of preemption (first move advantage, with the consequent emergence of negative externalities to competitors) in situations that consider the optimal moment for investment, in the context of asymmetric oligopolies, and using the options games method.Design/methodology/approach – The developed model was applied to the Brazilian aluminum can industry, in which three firms made up an asymmetric oligopoly, allowing strategic interactions and their consequences on firms’ investment decisions to be analyzed.Findings – In situations of preemption, the results show the relevance of using a dynamic model, allowing us to observe the importance of obtaining a competitive advantage in cost, and showing that it is possible to obtain monopoly profits or take advantage of isolated expansion for a longer period. If this advantage is great, rivals’ threat of preemption can be considered irrelevant, and that the firm will invest in monopolistic time, ignoring the possibility of rivals’ entry.Practical implications – In a competitive environment, firms need to decide whether the best strategy is to invest earlier, acquiring a competitive advantage over their rivals, or to postpone their investments, to acquire more information and mitigate the eventual consequences of market uncertainties. This work shows how to do it.Originality/value – This is the first paper that, by applying real options games, studies the impact of preemption of investment in the oligopolistic asymmetric environment of the Brazilian industry of aluminum cans. |
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Investment strategies in the Brazilian industry of aluminum cans: an analysis in the context of real options gamesEstrategias de inversión en la industria brasileña de latas de aluminio: un análisis en el ámbito de los juegos de opciones realesEstratégias de investimento na indústria brasileira de latas de alumínio: uma análise no contexto dos jogos de opções reaisReal options gamesAsymmetric oligopolyInvestment under uncertainty.Jogos de opções reaisoligopólio assimétricoinvestimento sob incerteza.Objective – The purpose of this article is to analyze the impact of preemption (first move advantage, with the consequent emergence of negative externalities to competitors) in situations that consider the optimal moment for investment, in the context of asymmetric oligopolies, and using the options games method.Design/methodology/approach – The developed model was applied to the Brazilian aluminum can industry, in which three firms made up an asymmetric oligopoly, allowing strategic interactions and their consequences on firms’ investment decisions to be analyzed.Findings – In situations of preemption, the results show the relevance of using a dynamic model, allowing us to observe the importance of obtaining a competitive advantage in cost, and showing that it is possible to obtain monopoly profits or take advantage of isolated expansion for a longer period. If this advantage is great, rivals’ threat of preemption can be considered irrelevant, and that the firm will invest in monopolistic time, ignoring the possibility of rivals’ entry.Practical implications – In a competitive environment, firms need to decide whether the best strategy is to invest earlier, acquiring a competitive advantage over their rivals, or to postpone their investments, to acquire more information and mitigate the eventual consequences of market uncertainties. This work shows how to do it.Originality/value – This is the first paper that, by applying real options games, studies the impact of preemption of investment in the oligopolistic asymmetric environment of the Brazilian industry of aluminum cans. Objetivo – Estudar o impacto da preempção, vantagem de primeiro lance com consequente existência de externalidades negativas para os competidores, em jogos de momento ótimo de investimento em um oligopólio assimétrico.Método – O modelo de jogos com opções desenvolvido no trabalho foi aplicado ao mercado brasileiro de latas de alumínio, por ser uma indústria caracterizada por elevadas barreiras de entrada e, as economias de escala favorecem os grandes produtores. Os principais dados foram obtidos da Associação Brasileira dos Fabricantes de Latas de Alta Reciclabilidade (ABRALATAS) e nos relatórios das empresas analisadas.Fundamentação teórica – O método de jogos de opções apresenta uma metodologia integrada que ajuda a superar as deficiências dos métodos tradicionais. Ele capta a dinâmica das interações estratégicas em um ambiente de incertezas, representando uma ferramenta estratégica capaz de guiar decisões gerenciais em um contexto competitivo.Resultados – Os resultados mostram que no caso estático a empresa de menor custo consegue absorver lucros maiores. Já no caso dinâmico, é possível obter lucros monopolísticos por um período de tempo maior. Quando a vantagem de custo é muito grande, a ameaça de preempção do rival poderá ser considerada irrelevante, e a empresa irá investir como um monopolista. Quando essa vantagem não é grande o suficiente, a firma precisa investir em um tempo de preempção anterior.Contribuições – Este é o primeiro trabalho que, aplicando jogos com opções reais, estuda o impacto da preempção do investimento em ambiente oligopolista assimétrico, na realidade da indústria de latas de alumínio no Brasil. FECAP2015-12-16info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionAvaliado por paresapplication/pdfapplication/pdfhttps://rbgn.fecap.br/RBGN/article/view/225310.7819/rbgn.v17i57.2253Review of Business Management; Vol. 17 No. 57 (2015); 1246-1263RBGN Revista Brasileira de Gestão de Negócios; Vol. 17 Núm. 57 (2015); 1246-1263RBGN - Revista Brasileira de Gestão de Negócios; v. 17 n. 57 (2015); 1246-12631983-08071806-4892reponame:Revista Brasileira de Gestão de Negócios (Online)instname:Fundação Escola de Comércio Álvares Penteado (FECAP)instacron:FECAPengporhttps://rbgn.fecap.br/RBGN/article/view/2253/pdfhttps://rbgn.fecap.br/RBGN/article/view/2253/pdf_1Copyright (c) 2015 Review of Business Managementinfo:eu-repo/semantics/openAccessCosta, Leticia de AlmeidaAzevedo, Felipe PhiladelphoSamanez, Carlos Patricio2021-07-21T16:27:41Zoai:ojs.emnuvens.com.br:article/2253Revistahttp://rbgn.fecap.br/RBGN/indexhttps://rbgn.fecap.br/RBGN/oai||jmauricio@fecap.br1983-08071806-4892opendoar:2021-07-21T16:27:41Revista Brasileira de Gestão de Negócios (Online) - Fundação Escola de Comércio Álvares Penteado (FECAP)false |
dc.title.none.fl_str_mv |
Investment strategies in the Brazilian industry of aluminum cans: an analysis in the context of real options games Estrategias de inversión en la industria brasileña de latas de aluminio: un análisis en el ámbito de los juegos de opciones reales Estratégias de investimento na indústria brasileira de latas de alumínio: uma análise no contexto dos jogos de opções reais |
title |
Investment strategies in the Brazilian industry of aluminum cans: an analysis in the context of real options games |
spellingShingle |
Investment strategies in the Brazilian industry of aluminum cans: an analysis in the context of real options games Costa, Leticia de Almeida Real options games Asymmetric oligopoly Investment under uncertainty. Jogos de opções reais oligopólio assimétrico investimento sob incerteza. |
title_short |
Investment strategies in the Brazilian industry of aluminum cans: an analysis in the context of real options games |
title_full |
Investment strategies in the Brazilian industry of aluminum cans: an analysis in the context of real options games |
title_fullStr |
Investment strategies in the Brazilian industry of aluminum cans: an analysis in the context of real options games |
title_full_unstemmed |
Investment strategies in the Brazilian industry of aluminum cans: an analysis in the context of real options games |
title_sort |
Investment strategies in the Brazilian industry of aluminum cans: an analysis in the context of real options games |
author |
Costa, Leticia de Almeida |
author_facet |
Costa, Leticia de Almeida Azevedo, Felipe Philadelpho Samanez, Carlos Patricio |
author_role |
author |
author2 |
Azevedo, Felipe Philadelpho Samanez, Carlos Patricio |
author2_role |
author author |
dc.contributor.author.fl_str_mv |
Costa, Leticia de Almeida Azevedo, Felipe Philadelpho Samanez, Carlos Patricio |
dc.subject.por.fl_str_mv |
Real options games Asymmetric oligopoly Investment under uncertainty. Jogos de opções reais oligopólio assimétrico investimento sob incerteza. |
topic |
Real options games Asymmetric oligopoly Investment under uncertainty. Jogos de opções reais oligopólio assimétrico investimento sob incerteza. |
description |
Objective – The purpose of this article is to analyze the impact of preemption (first move advantage, with the consequent emergence of negative externalities to competitors) in situations that consider the optimal moment for investment, in the context of asymmetric oligopolies, and using the options games method.Design/methodology/approach – The developed model was applied to the Brazilian aluminum can industry, in which three firms made up an asymmetric oligopoly, allowing strategic interactions and their consequences on firms’ investment decisions to be analyzed.Findings – In situations of preemption, the results show the relevance of using a dynamic model, allowing us to observe the importance of obtaining a competitive advantage in cost, and showing that it is possible to obtain monopoly profits or take advantage of isolated expansion for a longer period. If this advantage is great, rivals’ threat of preemption can be considered irrelevant, and that the firm will invest in monopolistic time, ignoring the possibility of rivals’ entry.Practical implications – In a competitive environment, firms need to decide whether the best strategy is to invest earlier, acquiring a competitive advantage over their rivals, or to postpone their investments, to acquire more information and mitigate the eventual consequences of market uncertainties. This work shows how to do it.Originality/value – This is the first paper that, by applying real options games, studies the impact of preemption of investment in the oligopolistic asymmetric environment of the Brazilian industry of aluminum cans. |
publishDate |
2015 |
dc.date.none.fl_str_mv |
2015-12-16 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Avaliado por pares |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://rbgn.fecap.br/RBGN/article/view/2253 10.7819/rbgn.v17i57.2253 |
url |
https://rbgn.fecap.br/RBGN/article/view/2253 |
identifier_str_mv |
10.7819/rbgn.v17i57.2253 |
dc.language.iso.fl_str_mv |
eng por |
language |
eng por |
dc.relation.none.fl_str_mv |
https://rbgn.fecap.br/RBGN/article/view/2253/pdf https://rbgn.fecap.br/RBGN/article/view/2253/pdf_1 |
dc.rights.driver.fl_str_mv |
Copyright (c) 2015 Review of Business Management info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2015 Review of Business Management |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf application/pdf |
dc.publisher.none.fl_str_mv |
FECAP |
publisher.none.fl_str_mv |
FECAP |
dc.source.none.fl_str_mv |
Review of Business Management; Vol. 17 No. 57 (2015); 1246-1263 RBGN Revista Brasileira de Gestão de Negócios; Vol. 17 Núm. 57 (2015); 1246-1263 RBGN - Revista Brasileira de Gestão de Negócios; v. 17 n. 57 (2015); 1246-1263 1983-0807 1806-4892 reponame:Revista Brasileira de Gestão de Negócios (Online) instname:Fundação Escola de Comércio Álvares Penteado (FECAP) instacron:FECAP |
instname_str |
Fundação Escola de Comércio Álvares Penteado (FECAP) |
instacron_str |
FECAP |
institution |
FECAP |
reponame_str |
Revista Brasileira de Gestão de Negócios (Online) |
collection |
Revista Brasileira de Gestão de Negócios (Online) |
repository.name.fl_str_mv |
Revista Brasileira de Gestão de Negócios (Online) - Fundação Escola de Comércio Álvares Penteado (FECAP) |
repository.mail.fl_str_mv |
||jmauricio@fecap.br |
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