<P>Corporate managers who face both strategic uncertainty and market uncertaintyconfront a classic trade-off between commitment and flexibility. They can stake a claim by making alarge capital investment today, influencing their rivals' behavior, or they can take a "waitand see" approach to avoid adverse market consequences tomorrow. In <I>CompetitiveStrategy</I>, Benoît Chevalier-Roignant and Lenos Trigeorgis describe an emerging paradigmthat can quantify and balance commitment and flexibility, "option games," by which thedecision-making approaches of real options and game theory can be combined. </P><P>Theauthors first discuss prerequisite concepts and tools from basic game theory, industrialorganization, and real options analysis, and then present the new approach in discrete time andlater in continuous time. Their presentation of continuous-time option games is the first systematiccoverage of the topic and fills a significant gap in the existing literature. </P><P><I>Competitive Strategy</I> provides a rigorous yet pragmatic and intuitive approach tostrategy formulation. It synthesizes research in the areas of strategy, economics, and finance in away that is accessible to readers not necessarily expert in the various fields involved. </P>