Timing Options for a Startup with Early Termination and Competition Risks

Abstract

This paper analyzes the timing options embedded in a startup firm, and the associated market entry and exit timing decisions under the exogenous risks of early termination and competitor's entry. Our valuation approach leads to the analytical study of a non-standard perpetual American installment option nested with an optimal sequential stopping problem. Explicit formulas are derived for the firm's value functions. Analytically and numerically, we show that early termination risk leads to earlier voluntary entry or exit, and the threat of competition has a non-trivial effect on the firm's entry and abandonment strategies.

[Retracted] Realization of a Noncontact IC Chip with Embedded Ferroelectric Memory in an Auxiliary Timing Device for Sports Games

“…Competitive sports highlights a new development culture, and promoting sports development has become one of the important strategies for the development of sports in many countries [1]. The continuous improvement of athletes' competitive sports level will make the education system gradually become another important foundation for the cultivation of competitive sports reserve talents after the competitive sports system [2]. The development of competitive sports is not only an expectation to cultivate high-level athletes with all-round development of morality, intelligence, and physical fitness but also a useful supplement to the competitive sports system and a useful reference to foreign competitive sports [3].…”