Option Game Model of Low-Carbon Residential Investment Decision-Making Under Imperfect Competition

The low-carbon residential project is of great uncertainty and always in long-term, the investment on these projects requires flexible decision basis and long-term decision strategy. According to the variation of the influencing factors in a certain project, the investment decision can be analyzed and adjusted by using the real option method. This paper studied the process of investment decision in low-carbon residential projects based on the real option theory and the research in the market. The method of investment decisions under the market of imperfectly competition is also explained, identified the value function of developers and the relationship between development value and development threshold. It also pointed out the best time and way for developers to make the investment. The conclusion of the paper emphasized the competitive advantage of the call option and offered a strong decision basis for the decision makers.