Real Options Analysis and Strategic Decision Making
نویسندگان
چکیده
منابع مشابه
Real Options Analysis in Strategic Decision Making
The research addresses the management dilemma of a decrease in the number of capital project investments, due to the current methods of capital budgeting (i.e. net present value analysis using discounted cash flows) being ineffective, because it does not effectively deal with uncertainty in the investment, and also does take management's flexibility into account. It has been determined that a s...
متن کاملReal Options and Investment Decision Making
Real options analysis seeks to value flexibility in investment opportunities – both the flexibility offered to management once the investment is undertaken, and the flexibility of delaying the investment through time. The real options approach contrasts with the standard approach to investment decision making, the net present value (NPV) approach, which assumes the investment opportunity is a n...
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We present the application of real options analysis (ROA) to a managerial decision-making problem. A case study was developed to illustrate the mathematical steps required to apply ROA. The results of this model show that a net present value analysis, which is most often used in practice, would have led to a sub-optimal decision, as it does not take into account the value of future options and ...
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Cognitive functioning is critical as in our daily life a host of real-world complex decisions in high-stakes markets have to be made. The decision-making process can be vulnerable to environmental stressors. Summarizing the growing economic and epidemiologic evidence linking air pollution, cognition performance and real-world decision-making, we first illustrate key physiological and psychologi...
متن کاملStrategic Real Options∗
I introduce a strategic seller to a standard model of real options. A privately informed seller, such as a startup, tries to court a forward-looking buyer, such as a venture capitalist. The buyer learns gradually about the seller’s quality, high or low, through exogenous news and can “adopt” the seller at any time. The seller pays a flow cost but can exit or privately upgrade its quality at any...
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ژورنال
عنوان ژورنال: Organization Science
سال: 2001
ISSN: 1047-7039,1526-5455
DOI: 10.1287/orsc.12.6.772.10080