This article is cited in 3 papers

Control in Social and Economic Systems

Simulation of investment strategies of firms under uncertainty

V. K. Akinfiev

Institute of Control Sciences of RAS

Abstract: This paper examines the problem of investment strategies choice of firms under demand uncertainty and competition in the market. A mathematical model describing the investment behavior of firms in a Duopoly Market is proposed. We study the impact of Investment Strategy of Firms on its financial performance and the efficiency of investment under demand uncertainty and competition in the market. Solution is reduced to the analysis of a bimatrix game, wherein the payoff matrix is formed by numerical simulation. We present an illustrative example of the proposed approach.

Keywords: investment decisions of firms, duopoly market, mathematical model, bimatrix game.

UDC: 021.8 + 025.1
BBK: 78.34

Received: November 15, 2015
Published: May 31, 2016

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