Chiang, Yao-Min - In: International Real Estate Review 15 (2012) 1, pp. 127-139
. This paper provides a flexible franchise fee scheme from the perspective of a government which can charge a sufficient … franchise fee and provide enough incentive for a private firm in a BOT project. This flexible franchise fee structure has option …-like properties. A pricing model is derived in this paper to price this flexible franchise fee scheme. The closed-form pricing model …