STRATEGIC QUALITY CHOICE UNDER UNCERTAINTY: A REAL OPTIONS APPROACH
نویسندگان
چکیده
منابع مشابه
Strategic Investment under Uncertainty: Merging Real Options with Game Theory
As becomes apparent from the standard text books in industrial organization (cf. Tirole, 1988, The Theory of Industrial Organization), the analysis of the effects of uncertainty within this field is yet underdeveloped. This paper shows that the new theory of strategic real options can be used to fill this gap. Based on the work by Smets (1991) standard models are identified, and they are analyz...
متن کاملHighway Development Decision-Making under Uncertainty: A Real Options Approach
A highway system development involves huge irreversible investments, and requires rigorous modeling and analysis before the implementation decision is made. This decision-making process is embedded with multiple uncertainties due to changes in political, social, and environmental contexts. In this paper, we present a multistage stochastic model for decision making in highway development, operat...
متن کاملInvestment Appraisal under Uncertainty - A Fuzzy Real Options Approach
The main purpose of this paper is to propose a fuzzy approach for investment project valuation in uncertain environments from the aspect of real options. The traditional approaches to project valuation are based on discounted cash flows (DCF) analysis which provides measures like net present value (NPV) and internal rate of return (IRR). However, DCF-based approaches exhibit two major pitfalls....
متن کاملReal options valuation under uncertainty
In this paper we develop a novel valuation model and methodology to value a pharmaceutical R&D project based on real options approach. The real options approach enables the possibility of optimally abandon the project before completion whenever the investment cost turns out to be larger than the expected net cash flow stream. On the other hand, the proposed model accounts for two different sour...
متن کاملThe Strategic Value of Flexible Quality Choice: a Real Options Analysis∗
This paper analyzes the value of flexibility in quality choice using a dynamic real-option framework. Firms decide about quality of their products when they enter the market upon incurring a sunk cost. Flexibility in quality choice induces (ceteris paribus) earlier investment, and the value of flexible quality increases with demand uncertainty. We find that a possibility of competitive entry mo...
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: The Manchester School
سال: 2010
ISSN: 1463-6786,1467-9957
DOI: 10.1111/j.1467-9957.2009.02124.x