Valuing Modularity as a Real Option
نویسندگان
چکیده
We provide a general valuation approach for capital budgeting decisions involving the modularization in the design of a system. Within the framework developed by Baldwin and Clark (2000), we implement a valuation approach using a numerical procedure based on the Least Squares Monte Carlo method proposed by Longstaff and Schwartz (2001). The approach is accurate, general and flexible.
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ورودعنوان ژورنال:
- Management Science
دوره 55 شماره
صفحات -
تاریخ انتشار 2009