Power market restructuring initiatives in several parts of the world in recent years have been successful in improving sector efficiency by introducing competition schemes involving private sector participation. However, those substantial benefits have been accompanied by additional risk as investment decisions face greater uncertainties than previous monopoly models. For this reason, some recent research has been focused on the development of analytical tools that can be used to model investment decisions in restructured power markets. Unfortunately, most of these tools have flaws, so it is necessary to combine techniques that consider both the risk that investors face and expected reactions from competitors. The purpose of this work is to demonstrate the potential of combining Real Options and Game Theory in competitive environments with risk and uncertainty to reduce overall investment risk. Specifically, this work examines Real Options Games as a tool to improve understanding of th