Decision Making Under Uncertainty—Real Options to the Rescue?

REFERENCES

• ABEL , A. , A. DIXIT , J. EBERLY , and R. PINDYCK , “ Options, the Value of Capital, and Investment ,” The Quarterly Journal of Economics , Vol. III , No. 3 , Aug 1996 , pp. 753 – 777 .
   Google Scholar
• AGGARWAL , R. and L. SOENEN , “ Project Exit Value as a Measure of Flexibility and Risk Exposure ,” The Engineering Economist , Vol. 35 , No. 1 , Fall 1989 , pp. 39 – 54 .
   Google Scholar
• AMRAM , M. , and N. KULATILAKA , Real Options Managing Strategic Investment in an Uncertain World , Harvard Business School Press , Boston , 1999 .
   Google Scholar
• AMRAM , M. , N. KULATILAKA , and J. HENDERSON , “ Taking an Option on IT ,” CIO Enterprise Magazine , Jun 15 1999 .
   Google Scholar
• ANDERSON , T. , “ Real Options Analysis in Strategic Decision Making An Applied Approach in a Dual Options Framework ,” Journal of Applied Management Studies , Vol. 9 , No. 2 , 2000 , pp. 235 – 255 .
   Google Scholar
• ARROW , K. , “ The Economic Implications of Learning by Doing ,” The Review of Economic Studies , Vol. 29 , No. 3 , Jun 1962 , pp. 155 – 173 .
   Web of Science ®Google Scholar
• ARROW , K. , and A. FiSHER , “ Environmental Preservation, Uncertainty, and Irreversibility ,” The Quarterly Journal of Economics , Vol. 88 , No. 2 , May 1974 , pp. 312 – 319 .
   Web of Science ®Google Scholar
• BELLALAH , M. , “ Irreversibility, Sunk Costs, and Investment Under Incomplete Information ,” R&D Management , Vol. 31 , No. 2 , 2001, pp. 115 – 126 .
   Web of Science ®Google Scholar
• BERNARDO , A. , and B. CHOWDHRY , “ Resources, Real Options, and Corporate Strategy ,” Working Paper , The Anderson School at UCLA , May 2000 .
   Google Scholar
• BLACK , F. , and M. SCHOLES , “ The Pricing of Options and Corporate Liabilities ,” Journal of Political Economy , Vol. 81 , May-Jun 1973 , pp. 637 – 659 .
   Web of Science ®Google Scholar
• BOER , F. , “ Valuation of Technology Using Real Options ,” Research Technology Management , Vol. 43 , No. 4 , Jul/Aug 2000 , pp. 26 – 30 .
   Web of Science ®Google Scholar
• BOLLEN , N. , “ Real Options and Product Life Cycles ,” Management Science , Vol. 45 , No. 5 , May 1999 , pp. 670 – 684 .
   Web of Science ®Google Scholar
• BOYLE , P. , “ Option Valuation Using a Three-Jump Process ,” International Options Journal , Vol. 3 , 1986 , pp. 7 – 12 .
   Google Scholar
• BOYLE , P. , “ A Lattice Framework for Option Pricing with Two-State Variables ,” Journal of Financial and Quantitative Analysis , Vol. 23 , 1988 , pp. 1 – 12 .
   Web of Science ®Google Scholar
• BRACH , M. , and D. PAXSON , “ A Gene to Drug Venture Poisson Options Analysis ,” R&D Management , Vol. 31 , No. 2 , 2001 , pp. 203 – 214 .
   Web of Science ®Google Scholar
• BRENNAN , M. , and E. SCHWARTZ , “ Evaluating Natural Resource Investments ,” Journal of Business , Vol. 58 , No. 2 , 1985 , pp. 135 – 157 .
   Web of Science ®Google Scholar
• BROWN , C. , and K. DAVIS , “ Options in Mutually Exclusive Projects of Unequal Lives ,” The Quarterly Review of Economics and Finance , Vol. 38 , Special Issue , 1998 , pp. 569 – 577 .
   Google Scholar
• BUSBY , J. , and C. PITTS , “ Real Options in Practice an Exploratory Survey of How Decision Makers in Industry Think About Flexibility ,” Management Accounting Research , Vol. 8 , 1997 , 169 – 186 .
   Google Scholar
• CARR , P. , “ The Valuation of Sequential Exchange Opportunities ,” The Journal of Finance , Vol. 43 , No. 5 , Dec 1988 , pp. 1235 – 1256 .
   Web of Science ®Google Scholar
• CHILDS P. and A. TRIANTIS , “ Dynamic R&D Investment Policies ,” Management Science , Vol. 45 , No. 10 , Oct 1999 , pp. 1359 – 1377 .
   Web of Science ®Google Scholar
• CHRISTIANSEN , D. , and S. WALLACE , “ Option Theory and Modeling Under Uncertainty ,” Annals of Operations Research , Vol. 82 , 1998 , pp. 59 – 82 .
   Web of Science ®Google Scholar
• CHUNG , K. , “ Output Decision under Demand Uncertainty with Stochastic Production Function A Contingent Claims Approach ,” Management Science , Vol. 36 , No. 11 , Nov 1990 , pp. 1311 – 1324 .
   Web of Science ®Google Scholar
• CHUNG , K. , and C. CHAROENWONG , “ Investment Options, Assets in Place, and the Risk of Stocks ,” Financial Management , Vol. 20 , No. 3 , Autumn 1991 , pp. 21 – 33 .
   Web of Science ®Google Scholar
• CONRAD , J. , “ The Quasi-Option Value and the Expected Value of Information ,” The Quarterly Journal of Economics , Vol. 94 , No. 4 , Jun 1980 , pp. 813 – 820 .
   Web of Science ®Google Scholar
• COPELAND , T. , and V. ANTIKAROV , Real Options , Texere , New York , 2001 .
   Google Scholar
• CORTAZAR , G. , and J. CASASSUS , “ Optimal Timing of a Mine Expansion Implementing a Real Options Model ,” The Quarterly Review of Economics and Finance , Vol. 38 , Special Issue , 1998 , pp. 755 – 769 .
   Google Scholar
• CORTAZAR , G. , and E. SCHWARTZ , “ A Compound Option Model of Production and Intermediate Inventories ,” The Journal of Business , Vol. 66 , No. 4 , Oct 1993 , pp. 517 – 540 .
   Web of Science ®Google Scholar
• CORTAZAR , G. , E. SCHWARTZ , and J. CASASSUS , “ Optimal Exploration Investments Under Price and Geological-Technical Uncertainty A Real Options Model ,” R&D Management , Vol. 31 , No. 2 , 2001 , pp. 181 – 189 .
   Web of Science ®Google Scholar
• CORTAZAR , G. , E. SCHWARTZ , and M. SALINAS , “ Evaluating Environmental Investments A Real Options Approach ,” Management Science , Vol. 44 , No. 8 , Aug 1998 , pp. 1059 – 1070 .
   Web of Science ®Google Scholar
• Cox , J. , S. Ross , and M. RUBINSTEIN , “ Option Pricing A Simplified Approach ,” Journal of Financial Economics , Vol. 7 , 1979 , pp. 229 – 263 .
   Web of Science ®Google Scholar
• COY , P. , “ Exploiting Uncertainty ,” Business Week , June 7 , 1999 , No. 3632 , p. 118 – 123 .
   Google Scholar
• DAVIS , G. , “ Estimating Volatility and Dividend Yield When Valuing Real Options to Invest or Abandon ,” The Quarterly Review of Economics and Finance , Vol. 38 , Special Issue , 1998 , pp. 725 – 754 .
   Google Scholar
• DEMERS , M. , “ Investment under Uncertainty, Irreversibility, and the Arrival of Information ,” The Review of Economic Studies , Vol. 58 , No. 2 , Apr 1991 , pp. 333 – 350 .
   Web of Science ®Google Scholar
• DETEMPLE , J. , and S. SUNDARESAN , “ Nontraded Asset Valuation with Portfolio Constraints A Binomial Approach ,” The Review of Financial Studies , Vol. 12 , No. 4 , 1999 , pp. 835 – 872 .
   Web of Science ®Google Scholar
• DIXIT , A. , and R. PiNDYCK , Investment under Uncertainty , Princeton University Press , New Jersey , 1994 .
   Google Scholar
• FiGLEWSKI , F. , “ Options Arbitrage in Imperfect Markets ,” The Journal of Finance , Vol. 44 , No. 5 , Dec 1989 , pp. 1289 – 131
   Web of Science ®Google Scholar
• FISCHER , S. , “ Call Option Pricing When the Exercise Price is Uncertain, and the Valuation of Index Bonds ,” The Journal of Finance , Vol. 33 , No. 1 , Mar 1978 , pp. 169 – 176 .
   Web of Science ®Google Scholar
• GESKE , R. , “ The Valuation of Compound Options ,” Journal of Financial Economics , Vol. 7 , No. 1 , Mar 1979 , pp. 63 – 81 .
   Web of Science ®Google Scholar
• GITMAN , L. , and P. VANDENBERG , “ Cost of Capital Techniques Used by Major U.S. Firms 1997 vs. 1980 ,” Financial Practice and Education , Fall/Winter 2000 , pp. 53 – 68 .
   Google Scholar
• GROSSMAN , S. , R. KIHLSTROM , and L. MIRMAN , “ A Bayesian Approach to the Production of Information and Learning by Doing ,” The Review of Economic Studies , Vol. 44 , No. 3 , Oct 1997 , pp. 533 – 547 .
   Google Scholar
• HE , H. , “ Convergence from Discrete- to Continuous-Time Contingent Claims Prices ,” The Review of Financial Studies , Vol. 3 , No. 4 , 1990 , pp. 523 – 546 .
   Web of Science ®Google Scholar
• HERATH , H.S.B. , J. JAHERA , and C.S. PARK , “ Deciding Which R&D Project to Fund ,” Corporate Finance , Vol. 5 , No. 5 , 2001, pp. 33 – 45 .
   Google Scholar
• HERATH , H.S.B. , and C.S. PARK , “ Economic Analysis of R&D Projects An Options Approach ,” The Engineering Economist , Vol. 44 , No. 1 , 1999 , pp. 1 – 35 .
   Google Scholar
• HERATH , H.S.B. , and C.S. PARK , “ Real Options Valuation and its Relationship to Bayesian Decision-Making Methods ,” The Engineering Economist , Vol. 46 , No. 1 , 2001 , pp. 1 – 32 .
   Google Scholar
• HERATH , H.S.B. ,C.S.PARK, “ Multi-Stage Capital Investment Opportunities as Compound Real Options ,” The Engineering Economist , Vol. 47 , No. 1 , 2002 , pp. 1 – 27 .
   Google Scholar
• HEVERT , K. , R. MCLAUGHLIN , and R. TAGGART , “ Interest Rates, Inflation, and the Value of Growth Options ,” The Quarterly Review of Economics and Finance , Vol. 38 , Special Issue , 1998 , pp. 599 – 613 .
   Google Scholar
• HODDER , J. , A. MELLO , and G. SICK , “ Valuing Real Options Can Risk-Adjusted Discounting be Made to Work? ” Journal of Applied Corporate Finance , Vol. 14 , No. 2 , Summer 2001 , pp. 90 – 101 .
   Google Scholar
• HOWELL , S. , and A. JAGLE , “ Laboratory Evidence, on How Managers Intuitively Value Real Growth Options ,” Journal of Business Finance & Accounting , Vol. 24 , No. 7/8 , Sep 1997 , pp. 915 – 935 .
   Google Scholar
• HULL , J. , Options, Futures, and Other Derivatives , 4th ed. , Prentice-Hall , Upper Saddle River , NJ , 2000 .
   Google Scholar
• HULL , J. , and A. WHITE , “ An Overview of Contingent Claims Pricing ,” Canadian Journal of Administrative Sciences , Vol. 5 , Sep 1998 , pp. 55 – 61 .
   Google Scholar
• IMAI , J. , and M. NAKAJIMA , “ A Real Option Analysis of an Oil Refinery Project ,” Financial Practice and Education , Fall/Winter 2000 , pp. 78 – 91 .
   Google Scholar
• JAGLE , A. , “ Shareholder Value, Real Options, and Innovation in Technology-Intensive Companies ,” R&D Management , Vol. 29 , No. 3 , 1999 , pp. 271 – 290 .
   Web of Science ®Google Scholar
• JENSEN , K. , and P. WARREN , “ The Use of Options Theory to Value Research in the Service Sector ,” R&D Management , Vol. 31 , No. 2 , 2001 , pp. 173 – 180 .
   Web of Science ®Google Scholar
• KAMRAD , B. , and R. ERNST , “ An Economic Model for Evaluating Mining and Manufacturing Ventures with Output Yield Uncertainty ,” Operations Research , Vol. 49 , No. 5 , Sep-Oct 2001 , pp. 690 – 699 .
   Web of Science ®Google Scholar
• KEELEY , R. , and S. PUNJABI , “ Valuation of Early-Stage Ventures Option Valuation Models versus Traditional Approaches ,” Journal of Entrepreneurial & Small Business Finance , Vol. 5 , No. 2 , 1996 , pp. 114 – 138 .
   Google Scholar
• KELLOGG , D. , and J. CHARNES , “ Real-Options Valuation for a Biotechnology Company ,” Financial Analysts Journal , May/Jun 2000 , pp. 76 – 84 .
   Google Scholar
• KELLY , S. , “ A Binomial Lattice Approach for Valuing a Mining Property IPO ,” The Quarterly Review of Economics and Finance , Vol. 38 , Special Issue , 1998 , pp. 693 – 709 .
   Google Scholar
• KEMNA , A. , “ Case Studies on Real Options ,” Financial Management , Vol. 22 , No. 3 , Autumn 1993 , pp. 259 – 270 .
   Web of Science ®Google Scholar
• KENYON , C. , and S. TOMPAIDIS , “ Real Options in Leasing The Effect of Idle Time ,” Operations Research , Vol. 49 , No. 5 , Sep-Oct 2001 , pp. 675 – 689 .
   Web of Science ®Google Scholar
• KESTER , C. , “ Today's Options for Tomorrow's Growth ,” Harvard Business Review , Mar-Apr 1984 , pp. 153 – 160 .
   Web of Science ®Google Scholar
• KIM , Y. , and H. Koo , “ Restructuring R&D The Case of Korea ,” Human Systems Management , Vol. 20 , 2001 , pp. 63 – 68 .
   Google Scholar
• KOGUT , B. , and N. KULATILAKA , “ Options Thinking and Platform Investments Investing in Opportunity ,” California Management Review , Vol. 36 , No. 2 , Winter 1994 , pp. 52 – 67 .
   Web of Science ®Google Scholar
• KULATILAKA , N. , “ The Value of Flexibility The Case of a Dual-Fuel Industrial Steam Boiler ,” Financial Management , Autumn 1993 , pp. 271 – 280 .
   Web of Science ®Google Scholar
• KUMAR , R. , “ A Note on Project Risk and Option Values of Investments in Information Technology ,” Journal of Management Information Systems , Vol. 13 , No. 1 , Summer 1996 , pp. 187 – 193 .
   Google Scholar
• LANDER , D. and G. PINCHES , “ Challenges to the Practical Implementation of Modeling and Valuing Real Options ,” The Quarterly Review of Economics and Finance , Vol. 38 , Special Issue , 1998 , pp. 537 – 567 .
   Google Scholar
• LANDER , D. , and P. SHENOY , “ Modeling and Valuing Real Options Using Influence Diagrams ,” Working Paper No. 283 , Babson College .
   Google Scholar
• LAVIN , A. , and R. ZoRN , “ The Impact of Economic Depreciation on the Abandonment Option A Guide for Practitioners ,” Financial Practice and Education , Fall/Winter 2000 , pp. 92 – 100 .
   Google Scholar
• LAVOIE , B. , and I. SHELDON , “ The Comparative Advantage of Real Options An Explanation for the U.S. Specialization in Biotechnology ,” AgBioForum , Vol. 3 , No. 1 , pp. 47 – 52 .
   Google Scholar
• LEE , J. , and D. PAXSON , “ Valuation of R&D Real American Sequential Exchange Options ,” R&D Management , Vol. 31 , No. 2 , 2001 , pp. 191 – 201 .
   Web of Science ®Google Scholar
• LINT , O. , and E. PENNINGS , “ An Option Approach to the New Product Development Process A Case Study at Phillips Electronics ,” R&D Management , Vol. 31 , No. 2 , 2001 , pp. 163 – 172 .
   Web of Science ®Google Scholar
• MACBET , J. , and L. MERVILLE , “ An Empirical Examination of the Black-Scholes Call Option Pricing Model ,” Journal of Finance , Vol. 34 , Dec 1979 , pp. 1173 – 1186 .
   Web of Science ®Google Scholar
• MADAN , D. , R. MILNE , and H. SHEFRIN , “ The Multinomial Option Pricing Model and its Brownian and Poisson Limits ,” The Review of Financial Studies , Vol. 2 , No. 2 , 1989 , pp. 251 – 265 .
   Google Scholar
• MAHAJAN , A. , “ Pricing Expropriation Risk ,” Financial Management , Winter 1990 , pp. 77 – 86 .
   Web of Science ®Google Scholar
• MAJD , S. , and R. PINDYCK , “ The Learning Curve and Optimal Production under Uncertainty ,” The RAND Journal of Economics , Vol. 20 , No. 3 , Autumn 1989 , pp. 331 – 343 .
   Web of Science ®Google Scholar
• MARGRABE , W. , “ The Value of an Option to Exchange One Asset for Another ,” The Journal of Finance , Vol. 33 , No. 1 , Mar 1978 , pp. 177 – 186 .
   Web of Science ®Google Scholar
• MARTZOUKOS , S. , and L. TRIGEORGIS , “ Resolving a Real Options Paradox with Incomplete Information After All, Why Learn? ” Working Paper , University of Cyprus - Nicosia , Mar 2001 .
   Google Scholar
• MASON , S. , and R. MERTON , “ The Role of Contingent Claims Analysis in Corporate Finance ,” in E. Altman and M. Subrahmanyam (Editors) , Recent Advances in Corporate Finance , Richard D. Irwin , Homewood , IL , 1985 .
   Google Scholar
• MAUER , D. , and S. OTT , “ Investment under Uncertainty The Case of Replacement Investment Decisions ,” The Journal of Financial and Quantitative Analysis , Vol. 30 , Issue 4 , Dec 1995 , pp. 581 – 605 .
   Web of Science ®Google Scholar
• MAZZOLA , I. , and K. McCARDLE , “ A Bayesian Approach to Managing Learning-Curve Uncertainty ,” Management Science , Vol. 42 , No. 5 , May 1996 ,pp. 680 – 692 .
   Web of Science ®Google Scholar
• MCDONALD , R. , and D. SLEGEL , “ The Value of Waiting to Invest ,” The Quarterly Journal of Economics , Vol. 101 , No. 4 , Nov 1986 , pp. 707 – 728 .
   Web of Science ®Google Scholar
• MCGRATH , R. , “ A Real Options Logic for Initiating Technology Positioning Investments ,” Academy of Management Review , Vol. 22 , No. 4 , 1997 ,pp. 974 – 996 .
   Web of Science ®Google Scholar
• MCGRATH , R. , and I. MACMILLAN , “ Assessing Technology Projects Using Real Options Reasoning ,” Research Technology Management , Vol. 43 , No. 4 , Jul/Aug 2000 , pp. 35 – 49 .
   Web of Science ®Google Scholar
• MCLAUGHLIN , R. , and R. TAGGART , “ The Opportunity Cost of Using Excess Capacity ,” Financial Management , Vol. 21 , No. 2 , Summer 1992 , pp. 12 – 23 .
   Web of Science ®Google Scholar
• MEIER , K. , N. CHRISTOFIDES , and G. SALKIN , “ Capital Budgeting under Uncertainty - An Integrated Approach Using Contingent Claims Analysis and Integer Programming ,” Operations Research , Vol. 49 , No. 2 , Mar-Apr 2001 , pp. 196 – 206 .
   Web of Science ®Google Scholar
• MERTON , R. , “ Theory of Rational Option Pricing ,” Bell Journal of Economics and Management Science , Vol. 4 , Spring 1973 , pp. 141 – 183 .
   Google Scholar
• MERTON , R. , “ Applications of Option-Pricing Theory Twenty-Five Years Later ,” The American Economic Review , Vol. 88 , No. 3 , Jun 1998 , pp. 323 – 349 .
   Web of Science ®Google Scholar
• MILLER , L. , and C.S. PARK , “ Case Study Real Options Approach to an Incremental Investment Decision in a Depot Maintenance Organization ,” Working Paper , Auburn University , 2001 .
   Google Scholar
• MILLER , L. , and C.S. PARK , “ Revenue Optimization in the Service Sector -A Real Options Approach to Manage Financial Risk ,” Working Paper , Auburn University , 2002 .
   Google Scholar
• MITCHELL , G. , and W. HAMILTON , “ Managing R&D as a Strategic Option ,” Research Technology Management , May-Jun 1988 , pp. 15 – 22 .
   Web of Science ®Google Scholar
• MORRIS , P. , E. TEISBERG , and A. KOLBE , “ When Choosing R&D Projects, Go With the Long Shots ,” Research Technology Management , Vol. 34 , No. 1 , Jan-Feb 1991 , pp. 35 – 40 .
   Web of Science ®Google Scholar
• MYERS , S. , “ Determinants of Capital Borrowing ,” Journal of Financial Economics , Vol. 5 , 1977 .
   Web of Science ®Google Scholar
• NEFTCI , S. , An Introduction to the Mathematics of Financial Derivatives , 2nd ed. , Academic Press , New York , 2000 .
   Google Scholar
• NEUFVILLE , R. , “ Real Options Dealing with Uncertainty in Systems Planning and Design ,” Paper presented 5th International Conference on “Technology Policy and Innovation” ; Delft , Netherlands , June 29 , 2001 .
   Google Scholar
• OSTBYE , S. , “ A Real Options Approach to Investment in Factor Demand Models ,” Applied Economic Letters , Vol. 4 , 1997 , pp. 153 – 157 .
   Web of Science ®Google Scholar
• OTTOO , R. , “ Valuation of Internal Growth Opportunities The Case of a Biotechnology Company ,” The Quarterly Review of Economics and Finance , Vol. 38 , Special Issue , 1998 , pp. 615 – 633 .
   Google Scholar
• PARK , C.S. , and H.S.B. HERATH , “ Exploiting Uncertainty - Investment Opportunities as Real Options A New Way of Thinking in Engineering Economics ,” The Engineering Economist , Vol. 45 , No. 1 , 2000 , pp. 1 – 36 .
   Google Scholar
• PANAYI , S. , and L. TRIGEORGIS , “ Multi-Stage Real Options The Cases of Information Technology Infrastructure and International Bank Expansion ,” The Quarterly Review of Economics and Finance , Vol. 38 , Special Issue , 1998 , pp. 675 – 692 .
   Google Scholar
• PICKLES , E. , and J. SMITH , “ Petroleum Property Valuation A Binomial Lattice Implementation of Option Pricing Theory ,” Energy Journal , Vol. 14 , No. 2 , 1993 , pp. 1 – 26 .
   Google Scholar
• RAUSSER , G. , and A. SMALL , “ Valuing Research Leads Bioprospecting and the Conservation of Genetic Resources ,” Journal of Political Economy , Vol. 108 , No. 1 , 2000 , pp. 173 – 206 .
   Web of Science ®Google Scholar
• REISS , A. , “ Investment in Innovations and Competition An Option Pricing Approach ,” The Quarterly Review of Economics and Finance , Vol. 38 , Special Issue , 1998 , pp. 635 – 650 .
   Google Scholar
• RENDLEMAN , R. , and B. BARTTER , “ Two-State Option Pricing ,” The Journal of Finance , Vol. 34 , No. 5 , 1979 , pp. 1093 – 1110 .
   Web of Science ®Google Scholar
• RITCHKEN , P. , and C. TAPIERO , “ Contingent Claims Contracting for Purchasing Decisions in Inventory Management ,” Operations Research ,Vol. 34 , No. 6 , Nov-Dec 1986 , pp. 864 – 870 .
   Web of Science ®Google Scholar
• ROSE , S. , “ Valuation of Interacting Real Options in a Tollroad Infrastructure Project ,” The Quarterly Review of Economics and Finance , Vol. 38 , Special Issue , 1998 , pp. 711 – 723 .
   Google Scholar
• SAPHORES , J. , “ The Economic Threshold with a Stochastic Pest PopulationA Real Options Approach ,” American Journal of Agricultural Economics , Vol. 82 , Aug 2000 , pp. 541 – 555 .
   Web of Science ®Google Scholar
• SCHOLES , M. , “ Derivatives in a Dynamic Environment ,” The American Economic Review , Vol. 88 , No. 3 , Jun 1998 , pp. 350 – 370 .
   Web of Science ®Google Scholar
• SHARP , D. , “ Uncovering the Hidden Value in High-Risk Investments ,” Sloan Management Review , Summer 1991 , pp. 69 – 74 .
   Google Scholar
• SICK , G. , Capital Budgeting with Real Options , Monograph Series in Finance and Economics, Monograph 1989-3 , New York University , Salomon Brothers Center , 1989 .
   Google Scholar
• SMIT , H. , “ Investment Analysis of Offshore Concessions in The Netherlands ,” Financial Management , Vol. 26 , No. 2 , Summer 1997 , pp. 5 – 17 .
   Web of Science ®Google Scholar
• SMIT , H. , and L. ANKUM , “ A Real Options and Game-Theoretic Approach to Corporate Investment Strategy Under Competition ,” Financial Management , Autumn 1993 , pp. 241 – 250 .
   Web of Science ®Google Scholar
• SMITH , J. , “ Much Ado About Options? ,” working paper , Duke University , July 1999 .
   Google Scholar
• SMITH , I. , and K. MCCARDLE , “ Valuing Oil Properties Integrating Option Pricing and Decision Analysis Approaches ,” Operations Research , Vol. 46 , No. 2 , Mar-Apr 1998 , pp. 198 – 217 .
   Web of Science ®Google Scholar
• SMITH , J. , and R. NAU , “ Valuing Risky Projects Option Pricing Theory and Decision Analysis ,” Management Science , Vol. 41 , No. 5 , May 1995 , pp. 795 – 816 .
   Web of Science ®Google Scholar
• STICKEL , E. , “ Uncertainty Reduction in a Competitive Environment ,” Journal of Business Research , Vol. 51 , 2001 , pp. 169 – 177 .
   Web of Science ®Google Scholar
• STOWE , J. , and T. SU , “ A Contingent-Claims Approach to the Inventory-Stocking Decision ,” Financial Management , Vol. 26 , No. 4 , Winter 1997 , pp. 42 – 55 .
   Web of Science ®Google Scholar
• STUART , S. , “ Doing a Deal? Check out ROV ,” Mergers & Acquisitions Report , Vol. 12 , No. 17 , April 1999 , pp. 1 – 3 .
   Google Scholar
• SUNDARESAN , S. , “ Continuous-time Methods in Finance A Review and an Assessment ,” The Journal of Finance , Vol. 44 , No. 4 , Aug 2000 , pp. 1569 – 1622 .
   Google Scholar
• TAUDES , A. , “ Software Growth Options ,” Journal of Management Information Systems , Vol. 15 , No. 1 , Summer 1998 , pp. 165 – 185 .
   Google Scholar
• TEISBURG , E. , “ An Option Valuation Analysis of Investment Choices by a Regulated Firm ,” Management Science , Vol. 40 , No. 4 , Apr 1994 , pp. 535 – 548 .
   Web of Science ®Google Scholar
• TIAN , Y. , “ A Modified Lattice Approach to Option Pricing ,” The Journal of Futures Markets , Vol. 13 , No. 5 , 1993 , pp. 563 – 577 .
   Web of Science ®Google Scholar
• TRIGEORGIS , L. , “ Real Options and Interactions with Financial Flexibility ,” Financial Management , Vol. 22 , No. 3 , Autumn 1993 , pp. 202 – 224 .
   Web of Science ®Google Scholar
• TRIGEORGIS , L. , Real Options Managerial Flexibility and Strategy in Resource Allocation , The MIT Press , Cambridge , MA , 1996 .
   Google Scholar
• WEINGARTNER , H. , Mathematical Programming and the Analysis of Capital Budgeting Problems , Prentice-Hall , Englewood Cliffs , NJ , 1963 .
   Google Scholar
• WILMOTT , P. , Derivatives The Theory and Practice of Financial Engineering , Jon Wiley & Sons, New York , 1998 .
   Google Scholar