Exchange options give the holder the right to exchange the asset V for the asset D. They present an important role for the evaluation of investment projects which have uncertainty both in the gross value (underlying asset) and in the investment costs (exercise price). In this paper we propose to...

This paper provides a real option methodology for evaluating R&D investment opportunities assuming that potential competitors can en- ter in the market. As it is well known, R&D investments are made often in a phased manner and so each stage creates an opportunity (option) for subsequent...

One of the problems of using the financial options methodolgy to analyse investment decisions is that strategic considerations become extremely important. So, the theory of real option games combines two successful theories, namely real options and game theory. The value of flexibility can be...

Aim of this paper is to analyse the equilibrium strategies of two firms investing in a new technology, when the probability of successful implementation is uncertain and market shares are asymmetric. In particular, we are able to consider three key feature of a new technology adoption. First, it...

The traditional NPV (Net Present Value) method doesn't value opportunely the e-commerce investment projects which are characte\-rized by initial limited cash flows and a high uncertainty. The real options theory instead individuates the strategical opportunities as basic part of the project...

This paper combines the real options approach with game theory in order to evaluate the convenience to invest in Research and Development (R&D). The evaluation method adopted in this case is not based on the traditional $VAN$ but on the binomial model, which is used for the pricing of financial...