Real options
Are Real Options “Real”? Isolating Uncertainty from Risk in Real Options Analysis
... contrary, real options have enjoyed great popularity recently (for example, Dixit and Pindyck, 1994; Trigeorgis, 1996; Amram and Kulatilaka, 1999) since, in the real world, managers have the right to ...
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Irreversible Investment, Real Options, and Competition: Evidence from Real Estate Development
... Real options theory has been applied to describe a broad range of investments and ...for real estate development, and usually, but not always, finding a negative relationship between uncertainty and ...
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Evaluating software architectures for stability: a real options approach
... concerning modularity, phased projects structures, delaying of decisions and other dynamic software design strategies. Sullivan et al. [13] formalized that option- based analysis, focusing in particular on the ...
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The Method of Real Options to Encourage the R & D Team
... of real options to en- courage R & D team when the enterprises can not achieve the desired economic benefit in the case of high-risk project or the immature ...the real option type of high-risk ...
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Decision support for firm performance by real options analytics
... applications, have been recommended in this area (see Reurer and Tong, 2007; Trigeorgis, 1996; Bowman and Hurry, 1993), there has been a dearth of exemplars of this approach. To mitigate this shortfall, our paper ...
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Valuing voluntary disclosure using a real options approach
... The real options methodology is used to develop the ...of real options and investment), but the use of real options methodology in relation to voluntary disclosure has been ...
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Franchise Revenue Guarantee Valuation: Real Options Approach
... the real options model uses either Brownian Motion or binomial process for underlying stochastic path, we are going to use the log-DD model in- troduced by Kariya and Liu ...
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Evaluation of hydropower upgrade projects a real options approach
... A real options framework is proposed to support the investment ...and real options valuation, and the results from our analysis suggest feasible investment strategies for Norsk Hydro ...
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Research and Development Projects Upon Real Options View
... Real options (RO) technique is used to value investments decisions under uncertainty ...This real options framework implies that any corporate decision to invest or divest in assets is simply ...
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The real options effect of uncertainty on investment and labor demand
... the real option effect of uncertainty increases the investment threshold, reducing the rate of investment in times of strong demand, it also lowers the disinvestment threshold, reducing the rate of disinvestment in ...
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Valuation of IT Investments Using Real Options Theory
... of real option considered was analyzed. For most types of real options, the underlying of the option corresponds to the valua- tion object of the IT ...growth options which type of IT ...
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Evaluation of real options portfolio for investment projects
... any options combinations in terms of type, sequence and option ...of real options that can be interpreted as a joint complex, compound option (Trigeorgis 2012, ...possible real option exercise ...
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A Real Options Analysis of Automatic Milking Systems
... Automatic, or robotic, milking systems have the potential to significantly change the way milk is pro- duced on U.S. dairy farms. However, there is a high degree of uncertainty associated with adoption of this new ...
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Real options analysis in the engineering company practice
... the real options analysis of selected investment ...expansive options and options on leaving the project in the case of acquisition of the ...the real options analysis, we ...
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Real Options Approach in Migration for two Specific Labor Markets
... a real options approach to model the migration decision of an individual under very specific labor market conditions where migration is analyzed as a “regime switching” ...
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Applications of Stochastic Control in Energy Real Options and Market Illiquidity
... of real option analysis to understand the effects of windfall taxes on mining operations can be found in ...and real options can be found in ...Our real option model sets out to design a ...
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A Real Options Approach to Distressed Property Borrower Lender Reconciliation
... to real estate investment, abandonment, and timing decisions over the past three ...applying real options theory to real estate development and to offer a theoretical model of valuation of ...
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Strategic delay in a real options model of R&D competition
... financial options, are rarely backed by legal contracts which guarantee the holder’s rights in precise ...Most real options are non- proprietary investment opportunities whose terms are somewhat ...
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The role of risk in IS/IT projects valuation : risk quantification and real options
... Real options approach looks a very attractive approach, but the problem is how can we apply the financial options evaluation approach to a project that cannot be replicated by a ...different ...
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Real Options Adoption in Capital Budgeting: A Highlight of Recent Literature
... 21.42%, real options by 50%, abandonment options by 17,64% and any other technique by ...using real options in making capital budgeting decisions and that all companies using the ...
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