Project profitability from society’s point of view
نویسنده
چکیده
This chapter deals with project profitability to society and how it is related to market-based commercial profitability. The first part discusses the sources of divergence between profitability to private companies and to society as a whole, and how commercial assessments can be modified in order to find the social surplus. The second part deals with the role of information and risk for project assessments. It shows how the social cost of risk-bearing can be derived from the pricing of risk in private risk markets. The value of choosing flexible project concepts in order to adapt to new information about important risk factors is demonstrated in various contexts.
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