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Operations Research, Systems Engineering and Industrial Engineering
<p>Real options (Finance)<br />Real options (Finance) -- Mathematical models<br />Capital investments -- Decision making -- Mathematical models<br />Public-private sector cooperation</p>
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Two Essays On The Domain Translation From Financial Options To Real Options, Hongyan Chen
Two Essays On The Domain Translation From Financial Options To Real Options, Hongyan Chen
Doctoral Dissertations
"Real options (ROs) extend the financial option pricing theory to the valuation of real asset investment and managerial flexibility under uncertainty. However, differences between financial and non-financial markets, and the complex real world environment of applications, build obstacles for the domain translation from financial options to ROs.
This dissertation is motivated by the challenges of domain translation and developed in two essays. The first essay studies the incentive function of ROs (named the RO incentive). The essay develops an option-game framework to model the RO incentive, examines the change of investment behavior caused by the RO incentive, and values the …