1. Abstract Investment decisions in new aircraft development programs are difficult because of large capital expenditures, long lead times, and many technical and market uncertainties. A flexible strategy that takes advantage of the ability of managers to incorporate information as uncertainties are resolved is suggested as a means to manage risk. In this paper, the use of real options analysis...

The major US wireless operators already have announced their plans for evolution of their networks, but some uncertainties remain, such as emergence of new technologies (WiMAX and WLAN) and consolidation among operators (AT&T Mobile and Sprint Nextel). The paper proposes a real option based model for technology decisions and applies it to the US wireless industry as a case study. We also discus...

By adopting a real options framework, we develop and analyze a production based valuation model that jointly incorporates process and market risks. Given this setting, techniques of contingent claims analysis and stochastic control theory are employed to obtain value maximizing operating policies in a constrained capacity environment. In our analysis, adjustments to operating policies are analo...

The rapid technological change and uncertain future evolutions have a large impact on investment projects in the telecommunication sector. When new infrastructure networks are rolled out, the initial assumptions can prove to be untrue in the future, severely impacting the payoff. It is therefore extremely important that projects offer flexibility to allow the management to react to unforeseen c...

Data plays a critical role in organizations up to the point of being considered a competitive advantage. However, the quality of the organizations’ data is often inadequate, affecting strategic and tactical decision making, and even weakening the organization’s image. Nevertheless it is still challenging to encourage management to invest in data quality improvement projects. Performing a tradit...