Modeling Foreign direct investment by a Prisoner’s dilemma: Greenfield investment (cooperation) or Mergers and Acquisitions (defection)
Foreign direct investment (FDI) is a heterogeneous flow of funds, composed of both acquisition (cross-border mergers and acquisitions, M&A) and Greenfield investment (GF). Since the dilemma of a firm between GF and M&A is similar to the one between cooperation and defection in Prisoner’s Di...
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| Main Authors: | , |
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| Format: | Article |
| Language: | Vietnamese |
| Published: |
VNU
2014
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| Subjects: | |
| Online Access: | http://repository.vnu.edu.vn/handle/11126/4766 |
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| Institution: | Vietnam National University, Hanoi |
| Language: | Vietnamese |
| Summary: | Foreign direct investment (FDI) is a heterogeneous flow of funds, composed of both acquisition (cross-border mergers and acquisitions, M&A) and Greenfield investment (GF). Since the dilemma of a firm between GF and M&A is similar to the one between cooperation and defection in Prisoner’s Dilemma (PD), we used PD for modeling FDI. We discuss the conditions
for the firms to take GF (cooperation) option by equilibrium analysis |
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