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Option games - the key to competing in capital-intensive industries
It's a story that regularly plays out in many industries. Indeed, any company making big-budget investment decisions faces the same basic dilemma. On the one hand, it must make timely, strategic investments to prevent rivals from gaining ground. On the other, it must avoid tying up too much cash in risky projects, especially during times of market uncertainty. The traditional valuation methods - namely, discounted cash flow and real options - fall short in resolving this dilemma. We present here a valuation tool recently developed by Han Smit and Lenos Trigeorgis that overcomes the shortcomings of those analytic approaches. The tool, called option games, combines real options (which relies on the evolution of prices and demand) and game theory (which captures competitors' moves) to quantify the value of flexibility and commitment, allowing managers to make rational choices between alternative investment strategies..Printed journal
Ketersediaan
| Call Number | Location | Available |
|---|---|---|
| PSB lt.dasar - Pascasarjana | 1 |
| Penerbit | : Harvard Business School Publishing |
|---|---|
| Edisi | - |
| Subjek | Management science Investment policy Models |
| ISBN/ISSN | 178012 |
| Klasifikasi | - |
| Deskripsi Fisik | - |
| Info Detail Spesifik | - |
| Other Version/Related | Tidak tersedia versi lain |
| Lampiran Berkas | Tidak Ada Data |