Decisions to invest in information technology (IT) infrastructure are often made based on an assessment of its immediate value to the organization. However, an important source of value comes from the fact that such technologies have the potential to be leveraged in the development of future applications. From a real options perspective, IT infrastructure investments create growth options that ...

In this paper we apply a simple two-period model of investment to examine how consideration of the real options associated with investment decisions might be expected to affect the cost of capital for telecommunications infrastructure firms in light of the tumultuous changes associated with the emergence of the Internet. Because investments in new telecommunications facilities also may provide ...

Congested highways and airports, collapsing bridges, deteriorating roads, periodic water shortages, and suspect waste disposal facilities bear silent witness that the infrastructure of our nation, currently valued at close to $1 trillion, is inadequate. To shore up America’s foundations, many economists and policy analysts have urged the federal government to increase spending substantially. Th...

The current competitive environment in mobile communication services in an increasingly mature market requires service providers to offer their communication services at rates attractive to their customers while at the same time offering reasonable service quality. As quality-of-service (QoS) is tightly coupled with communication system infrastructure investments, finding the right balance betw...