Huisman, Kuno; Kort, Peter; Plasmans, J.E.J. - Tilburg University, Center for Economic Research - 2007
generations of products are invented over time. First, we develop a real options investment model in which, according to standard … model (V AR) provides the best fit. Integrating this model with the real options machinery, we find that (i) at the moment … standard real options model based on GBM. …