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Theoretical results are given and the model\u2019s usefulness is exemplified using simulations. We have observed that both the entrepreneur and the investor are better off under a contract which involves repayments and a share of the start-up company. We also have observed that the entrepreneur will choose riskier actions as the repayments become harder to meet up to a level where the company is no longer able to survive.<\/jats:p>","DOI":"10.1007\/s10479-019-03426-5","type":"journal-article","created":{"date-parts":[[2019,10,23]],"date-time":"2019-10-23T17:04:54Z","timestamp":1571850294000},"page":"317-330","update-policy":"https:\/\/doi.org\/10.1007\/springer_crossmark_policy","source":"Crossref","is-referenced-by-count":17,"title":["Investment and operational decisions for start-up companies: a game theory and Markov decision process approach"],"prefix":"10.1007","volume":"299","author":[{"ORCID":"https:\/\/orcid.org\/0000-0002-3132-7909","authenticated-orcid":false,"given":"Thomas W.","family":"Archibald","sequence":"first","affiliation":[],"role":[{"role":"author","vocabulary":"crossref"}]},{"ORCID":"https:\/\/orcid.org\/0000-0002-1127-810X","authenticated-orcid":false,"given":"Edgar","family":"Possani","sequence":"additional","affiliation":[],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"297","published-online":{"date-parts":[[2019,10,23]]},"reference":[{"issue":"2","key":"3426_CR1","doi-asserted-by":"publisher","first-page":"371","DOI":"10.2307\/2329157","volume":"49","author":"A Admati","year":"1994","unstructured":"Admati, A., & Pfleiderer, P. 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