Project Flexibility, Agency, and Competition
New Developments in the Theory and Application of Real Options
Published in December 1999
Book
Hardback
366 pages
978-0-19-511269-6 (ISBN)
Description
While most approaches to capital budgeting have used discounted cash flow valuation techniques, recent attention has been given to the valuation of "real options" to look at capital budgeting decisions and project management. Real options are a measure of the value of managerial flexibility and strategic value in capital investment. Because this topic is important but not yet covered adequately, "Innovation, Infrastructure and Strategic Options" fills a major gap in the market. This text deals with issues of R&D and technology options, investments involving learning, infrastructure, competition, strategy, and growth options.
More details
Language
English
Place of publication
New York
United States
Target group
College/higher education
Illustrations
tables, num. graph.
numerous graphs and tables
Dimensions
Height: 234 mm
Width: 156 mm
Weight
667 gr
ISBN-13
978-0-19-511269-6 (9780195112696)
Copyright in bibliographic data is held by Nielsen Book Services Limited or its licensors: all rights reserved.
Schweitzer Classification
Content
1. (Introduction) Real Options Analysis: Development and New Contributions; PART I: OPTIMAL CONTINGENT POLICIES AND THE VALUE OF FLEXIBILITY; 2. Real Options and Rules of Thumb in Capital Budgeting; 3. Investment in Flexible Technologies under Uncertainty; 4. Expandability, Reversibility, and Optimal Capacity Choice; 5. Entry and Exit Strategies under Non-Gaussian Distributions; 6. Evaluating Research and Development Investments; PART II: AGENCY, CONTRACTS, AND INCENTIVES; 7. A Self-Enforced Dynamic Contract for Processing of Natural Resources; 8. Bidding for the Antamina Mine: Valuation and Incentives in a Real Options Context; 9. Agency, Costs, Underinvestment, and Optimal Capital Structure: The Effect of Growth Options to Expand; PART III: FLEXIBILITY IN NATURAL AND ENVIRONMENTAL RESOURCE INVESTMENTS; 10. Valuation of Natural Resource Investments with Stochastic Conscience Yields and Interest Rates; 11. A Compound Option Model for Evaluating Multi-Stage Natural Resource Investments; 12. Optimal Extraction of Nonrenewable Resources when Costs Cumulate; 13. Real Options and the Timing of Emission Limits under Ecological Uncertainty; PART IV: STRATEGIC OPTIONS AND PRODUCT MARKET COMPETITION; 14. Competitive Investment Decisions: A Synthesis; 15. Equilibrium Time To Build: A Real Options Approach; 16. Strategic Sequential Investments and Sleeping Patents; 17. The Ship Lay-Up Option and Equilibrium Freight Rates