Long run value stabilization in a real options perspective

The present value of growth opportunities with stable long run value and decreasing investment cost is addressed in a real options perspective. The model is solved in terms of closed form solutions, and a duality between elementary real options of waiting to invest is conjectured to be a fundamental structure of a forthcoming theory of real options. A pure capital budgeting perspective is pursued. Natural lines for future research are accounted for.

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Year of publication:	2009
Authors:	Mantovi, A.
Institutions:	Facoltà di Economia, Università degli Studi di Parma
Subject:	PVGO \| real options \| strategic investment \| learning

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Extent:	application/pdf
Series:	Economics Department Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 2009-EP01 1 pages long
Classification:	D92 - Intertemporal Firm Choice and Growth, Investment, or Financing
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005272739