منابع مشابه
An Investment Criterion Incorporating Real Options
Abstract: This paper provides an investment decisionmaking criterion under uncertainty using real options methodology to evaluate if an investment should be made immediately, cautiously, deferred (wait-and-watch), or foregone. We develop a decision-making index d, which is equal to the expectation of net present value (NPV) normalized by its standard deviation. Under a lognormal assumption of t...
متن کاملHow to Analyze the Investment-Uncertainty Relationship in Real Option Models
The real options tradition originally predicted a decreasing relationship between uncertainty and investment, through the positive effect of higher uncertainty on the trigger level for revenue relative to costs. An opposing effect on the probability of reaching the level has been identified, yielding a total effect with ambiguous sign. This paper makes three points. The “opposing” effect is not...
متن کامل∗A Multi-stage Investment Game in Real Option Analysis†
This paper investigates an interaction between the managerial flexibility and the competition in a dynamic situation. The value of the flexibility can be valued as a real option while the competition can be analyzed with the game theory. We consider a multi-stage game with two firms under demand uncertainty. In the model, One firm called firm L firstly makes an investment decision, and the othe...
متن کاملPrivate Investment in Biodiversity Conservation : a Real Option Approach
In the 1990’s, the World Agroforestry Centre (ICRAF) initiated a domestication programme of indigenous fruit trees (IFTs) in Southern Africa to increase farmhousehold income through farmer-led tree planting and thus conserve bio-diversity. From the farmer's point of view planting domesticated IFTs is an investment under uncertainty and irreversibility. As timing of planting is flexible, real op...
متن کاملNetwork-based real option models
Building on earlier work to incorporate real option methodologies into network modeling, two models are proposed. The first is the network option design problem, which maximizes the expanded net present value of a network investment as a function of network design variables with the option to defer the committed design investment. The problem is shown to be a generalized version of the network ...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of Real Options and Strategy
سال: 2011
ISSN: 1881-5774,1884-1635
DOI: 10.12949/realopn.4.159