Abstract The Real Options (RO) approach is a powerful tool for decision analysis in dynamic
or non-stationary stochastic settings, as it considers the value of decision flexibility under …

This paper examines the boundaries of real options logic, with an application to joint
ventures (JVs). We distinguish between forms of uncertainty that are resolved endogenously …

This article considers investment decisions within an uncertain dynamic and duopolistic
framework. Each investment decision involves to determine the timing and the capacity …

By mixing concepts from both game theoretic analysis and real options theory, an
investment decision in a competitive market can be seen as a “game” between firms, as …

From the publisher. Corporate managers who face both strategic uncertainty and market
uncertainty confront a classic trade-off between commitment and flexibility. They can stake a …

Ports worldwide operate in an uncertain environment and compete with nearby ports to
attract cargo. The extent of competition is influenced by the geographical location and …

This article analyzes the optional and strategic features of infrastructure investment.
Infrastructure investments generate other investment opportunities, and in so doing change …

Although the academic literature on real options has grown enormously over the past three
decades, the adoption of formal real option valuation models by practitioners appears to be …

This paper examines irreversible investment in a project with uncertain returns, when there
is an advantage to being the first to invest and externalities to investing when others also do …

Investment is a central theme in economics, finance, and operational research. Traditionally,
the focus of analysis has been either on assessing the value of flexibility (investment under …