This paper estimates some of the parameters of the Schwartz and Moon (2001)) model using cross-sectional data. Stochastic costs, future financing, capital expenditures and depreciation are taken into account. Some special conditions are also set: the speed of adjustment parameters are equal; the...

This paper uses cross-sectional quarterly data to estimate the parameters of the Schwartz and Moon (2000) model and to price five well known internet companies. The model is drawn from real options theory and capital budgeting techniques. Both continuous and discrete time versions are proposed....