Article ID: | iaor20106341 |
Volume: | 7 |
Issue: | 4 |
Start Page Number: | 355 |
End Page Number: | 375 |
Publication Date: | Oct 2010 |
Journal: | Computational Management Science |
Authors: | Oliveira Fernando S |
Keywords: | decision |
In this paper we look at the problem of strategic decision making. We start by presenting a new formalisation of strategic options as finite automata. Then, we show that these finite automata can be used to develop complex models of interacting options, such as option combinations and product options. Finally, we analyse real option games, presenting an algorithm to generate option games (based on automata).