Simulation of investment strategies of firms under uncertainty

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.