Cassimon, D.; De Backer, M.; Engelen, P.J.; Van Wouwe, M.; … - In: Research Policy 40 (2011) 9, pp. 1200-1216
The valuation of multi-staged pharmaceutical R&D can be interpreted as a chain of real options. In valuing these compound option models, a crucial problem is how to deal with the different types of risk. Previous models, such as Cassimon et al. (2004), offer a closed-form solution for the...
