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On the Practical Application of the Real Options Theory
Author(s) -
Botteron Pascal
Publication year - 2001
Publication title -
thunderbird international business review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.553
H-Index - 37
eISSN - 1520-6874
pISSN - 1096-4762
DOI - 10.1002/tie.1008
Subject(s) - outcome (game theory) , range (aeronautics) , investment (military) , field (mathematics) , computer science , management science , strategic management , operations research , risk analysis (engineering) , economics , business , microeconomics , management , engineering , mathematics , political science , politics , law , pure mathematics , aerospace engineering
This article aims to present and explain the potential of the real options theory. This theory can help solve many corporate problems in the field of investment strategies. It incorporates a wide range of internal and external factors that are playing a potential role in strategy outcome. The real options tool has already been applied in many industries and many divisions of their business. The main advantage of this methodology is that management is forced to develop a more structured thinking pad due to the fact that real options is based on a clear and accurate procedure. © 2001 John Wiley & Sons, Inc.