Valuation of an R&D project with three types of uncertainty

Material type: 文書・図像類

Author: Nishihara, Michi

Publisher: Graduate School of Economics and Osaka School of International Public Policy (OSIPP), Osaka University

Publication date: 2017-06

Material Format: Paper

Capacity, size, etc.: -

NDC: -

View All

Notes on use

Note (General)：: This paper develops an R&D decision-making model in the real options framework.The model is generic enough to capture three types of uncertainty in an...

Search by Bookstore

Holdings of Libraries in Japan

This page shows libraries in Japan other than the National Diet Library that hold the material.

List of Cooperating Institutions and Databases

Please contact your local library for information on how to use materials or whether it is possible to request materials from the holding libraries.

other

OUKA (Osaka University Knowledge Archive)
Paper
You can check the holdings of institutions and databases with which Institutional Repositories DataBase(IRDB)(Institutional Repository) is linked at the site of Institutional Repositories DataBase(IRDB)(Institutional Repository).
OUKA (Osaka University Knowledge Archive)

Search by Bookstore

Bibliographic Record

You can check the details of this material, its authority (keywords that refer to materials on the same subject, author's name, etc.), etc.

Paper

Material Type: 文書・図像類
Title: Valuation of an R&D project with three types of uncertainty
Author/Editor: Nishihara, Michi
Author Heading: Nishihara, Michi
https://nrid.nii.ac.jp/nrid/1000020456940
Publication, Distribution, etc.: Graduate School of Economics and Osaka School of International Public Policy (OSIPP), Osaka University
Publication Date: 2017-06
Publication Date (W3CDTF): 2017-06
Periodical title: Discussion Papers In Economics And Business
No. or year of volume/issue: 17-15
Volume: 17-15
Pages: 1-22
Text Language Code: eng
Subject Heading: Capital budgeting
Decision analysis
Risk
R&D
Real options
Target Audience: 一般
Note (General): This paper develops an R&D decision-making model in the real options framework.The model is generic enough to capture three types of uncertainty in an R&D project,namely, uncertainty of research duration and costs, market value of technology, and a competitor’s technology development. I derive analytical solutions, which help practitioners and researchers to evaluate various cases of R&D investment. Further, by analyzing the model with a wide range of parameter values, I reveal the following effects of the three types of uncertainty on R&D investment: Higher uncertainty of research duration and costs, unlike market value uncertainty, speeds up investment, especially combined with a higher risk of competition. The investment timing can be U-shaped in the strength of competition because of the trade-off between the preemptive investment effect and the decreased project value effect. These results can account for empirical findings about the uncertainty-investment relation in industries with high R&D intensity and severe competition.
Periodical Title (NCID): AA1160366X
https://ci.nii.ac.jp/ncid/AA1160366X
References (URI): URI
http://www2.econ.osaka-u.ac.jp/library/global/dp/1715.pdf
Data Provider (Database): 国立情報学研究所 : 学術機関リポジトリデータベース（IRDB）（機関リポジトリ）
https://irdb.nii.ac.jp
Original Data Provider (Database): 大阪大学 : 大阪大学学術情報庫　桜華