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Boyer, Marcel; Gravel, Éric - Centre Interuniversitaire de Recherche en Analyse des … - 2003

In this report, we first develop a simplified example that illustrates the importance of considering the option ``waiting to invest'' when valuing an investment. This is followed by a short description of other options that could be embedded in an investment opportunity. In order to stress the...

Persistent link: https://www.econbiz.de/10005100465

Real Options, Preemption, and the Dynamics of Industry Investments

Boyer, Marcel; Lasserre, Pierre; Mariotti, Thomas; … - Centre Interuniversitaire de Recherche en Analyse des … - 2001

industry investment occurs earlier than socially optimal and the first entrant takes more risk than socially optimal. While …

Persistent link: https://www.econbiz.de/10005100881

Testing the Option Value Theory of Irreversible Investment

Harchaoui, Tarek M.; Lasserre, Pierre - Centre Interuniversitaire de Recherche en Analyse des … - 1999

This paper statistically tests the option theory of irreversible investment under uncertainty. Using contingent claims valuation, we derive the value of options to invest in capacity, where the projects are endogenous to the economic circumstances prevailing at the investment date. We then test...

Persistent link: https://www.econbiz.de/10005100855

Création de valeur, gestion de risque et options réelles

Boyer, Marcel; Christoffersen, Peter; Lasserre, Pierre; … - Centre Interuniversitaire de Recherche en Analyse des … - 2003

exposition to downside risk and promoting exposition to upside opportunities. It stands at the hinge between pure finance and … other areas of decision making under risk such as project evaluation, market entry and exit, organizational restructuring … financial systems rests primarily on proper risk assessment and management in project evaluation. The real options approach is …

Persistent link: https://www.econbiz.de/10005079348

Value creation, risk management, and real options

Boyer, Marcel; Christoffersen, Peter; Lasserre, Pierre; … - Centre Interuniversitaire de Recherche en Analyse des … - 2003

Persistent link: https://www.econbiz.de/10005079360

A Dynamic Duopoly Investment Game without Commitment under Uncertain Market Expansion

Boyer, Marcel; Lasserre, Pierre; Moreaux, Michel - Centre Interuniversitaire de Recherche en Analyse des … - 2011

We model capacity-building investments in a homogeneous product duopoly facing uncertain demand growth. Capacity building is achieved through the addition of production units that are durable and lumpy and whose cost is irreversible. While building their capacity over time, firms compete à la...

Persistent link: https://www.econbiz.de/10009350695

Species Preservation and Biodiversity Value: A Real Options Approach

Kassar, Ilhem; Lasserre, Pierre - Centre Interuniversitaire de Recherche en Analyse des … - 2002

We evaluate biodiversity in a real options framework, when the resources in use are substitutable. We examine optimal conservation decisions given that a biodiversity loss is irreversible and that future use values are uncertain. While species substitutability is generally believed to reduce the...

Persistent link: https://www.econbiz.de/10005100634

A Real Option Approach to the Protection of a Habitat Dependent Endangered Species

Abdallah, Skander Ben; Lasserre, Pierre - Centre Interuniversitaire de Recherche en Analyse des … - 2008

drastically reduces the extinction risk and increases forest value. Nous utilisons la méthode des options réelles pour déterminer …

Persistent link: https://www.econbiz.de/10005100876

Emerging Environmental Problems, Irreversible Remedies, and Myopia in a Two Country Setup

Boyer, Marcel; Lasserre, Pierre; Moreaux, Michel - Centre Interuniversitaire de Recherche en Analyse des … - 1997

As development proceeds, the demand for environmental protection increases. We study optimal investment decision rules when protection investments are irreversible and indivisible. We show that myopia (focusing on one particular outlay without considering investments that are to come later in...

Persistent link: https://www.econbiz.de/10005100886

Company Flexibility, the Value of Management and Managerial Compensation

Christoffersen, Peter; Pavlov, Andrey - Centre Interuniversitaire de Recherche en Analyse des … - 2003

The variation in managerial compensation across countries and industries for firms of similar size is staggering. We analyze this phenomenon in a continuous time model of the firm, where the economic environment evolves stochastically over time and where changes to the firm operations are...

Persistent link: https://www.econbiz.de/10005100891