Strategic Management and Planning for the Agribusiness Codification: FAES 561

QUESTION 1

Explain how the assumptions and predictions of the Stackelberg model differ from the assumptions and predictions of the Cournot oligopolistic quantity competition model.

QUESTION 2

Normally, all else equal, the more uncertainty there is, the lower the value of a project. How do you explain then that real options are more valuable the more uncertainty the project has?