Quantifying Option Implications

Quantifying the Strategic Option Value of Technology Investments

We develop an integrated real options and industrial organization framework to quantify the strategic option value of technology investments. Strategic investments (e.g., R&D, capacity expansion or strategic acquisitions) are difficult to analyze based on standard approaches. Yet, it is these decisions that determine a firm’s competitive success in a changing technological and competitive lands...

Asymmetric Jump Processes: Option Pricing Implications

Implications of Parameter Uncertainty on Option Prices

Financial markets are complex processes where investors interact to set prices. We present a framework for option valuation under imperfect information, taking risk neutral parameter uncertainty into account. The framework is a direct generalization of the existing valuation methodology. Many investors base their decisions on mathematical models that have been calibrated to market prices. We ar...

Medicaid TEFRA Option in Minnesota: Implications for Patient Rights

This research studied a special-needs population under age 18 who had both private insurance and Medicaid coverage through the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) option. We found that children with managed care plans, particularly health maintenance organizations (HMOs), tended to incur higher total expenses to TEFRA than children with indemnity plans. Our findings also sh...

Implications of vessel co-option in sorafenib-resistant hepatocellular carcinoma

The reason why tumors generally have a modest or transient response to antiangiogenic therapy is not well understood. This poses a major challenge for sorafenib treatment of advanced hepatocellular carcinoma (HCC) where alternate therapies are lacking. We recently published a paper entitled "Co-option of liver vessels and not sprouting angiogenesis drives acquired sorafenib resistance in hepato...