Despite a good number of scientific developments in innovation, most studies suggest that the most effective innovation project should be only selected for a group of economic indicators related to investment. In practice, it is necessary to create a method for assessing the effectiveness of...

Motivated by the real-world challenges of real options evaluation faced by many companies when commodity prices exhibit dramatic volatility and project values can become negative, this paper presents a generalized framework for solving a multifactor real options problem by approximating the...

We analyze returns to lumpy projects with multiple investors. Since each investor's commitment increases the likelihood of project completion it exerts a positive externality on other investors. We show that due to this externality either a rise in the cost of abandoning the project or decreased...