Hong Kong has been using the leasehold system of land management rather than freehold since its colonial era. This system controlled and presently still controls uses of leased land through leasehold conditions. Many leases granted decades ago thus require formal modifications to lease conditions to formalize proposed changes in land use, or to realize the actual present economic value of the l...

The integration of "real options" analysis will radically change the design of public and private systems. It will change the processes of system design, the way planners deal with uncertainly and risk. It will also change the outcomes, the kinds of elements designers build into the system as they develop it. This paper explains this coming evolution, and presents cases documenting the changes ...

There is a universe of real options opportunities for infrastructure development that are not fully considered in real options analysis literature. These are known as real options “in” infrastructures systems. They are design components embedded early on “in” the system design process – i.e. prior to fielding and operations – to enable time-to-build, scale alteration, product switching, and man...

Although the use of real options for valuation of information technology (IT) investments has been well-documented, little research has been conducted to examine its relevance for prioritizing a portfolio of projects. When the effect of project interdependencies is considered, the complexity of optimally prioritizing even a small number of projects poses several challenges in applying real opti...

a r t i c l e i n f o To address the issue of decision support for designing and managing flexible projects and systems in the face of uncertainties, this paper integrates real options valuation, decision analysis techniques, Monte Carlo simulations and evolutionary algorithms in an evolutionary real options framework. The proposed evolutionary real options framework searches for an optimized p...