E-learning markets have been expanding very rapidly. As a result, the involved senior managers are increasingly being confronted with the need to make significant investment decisions related to the e-learning business activities. Real options applications to risk management and investment evaluation of Information and Communication Technologies (ICT) have mainly focused on a single and a-prior...

This paper presents a novel method to evaluate the economic feasibility of Fiber-to-the-Home networks resorting to state-of-the-art techniques. The method presented in this paper is a powerful combination of game theory, advanced capital budgeting algorithms with real options and Monte Carlo simulations with complex statistical distributions to evaluate project risk. Index Terms — FTTH, Game th...

in the restructured environment of electricity market, firstly the generating companies and the customers are looking for maximizing their profit and secondly independent system operator is looking for the stability of the power network and maximizing social welfare. in this paper, a one way auction in the electricity market for the generator companies is considered in both perfect and imperfec...

Despite their status as foundational concepts in software engineering, many software design decision-making principles and heuristics, such as information hiding and the delaying of design decisions, are still idiosyncratic, ad hoc, poorly integrated and not clearly based on any sound theory. In this paper, we develop an economics-based approach to providing a firmer foundation for software des...

A firm owns the investment rights over one undeveloped oilfield with technical uncertainties on the size and quality of the reserve. In addition, the long run expected oil price follows a stochastic process. The firm needs to select the best alternative of investment in information with different costs and different revelation powers. The modeling of technical uncertainty uses the practical con...

TAbstract T—This paper develops a tractable real options framework to analyze the effects of asymmetric information on firms' investment decisions when firms issue equity to finance investment. We assume that firm insiders exactly know the firms' growth prospects, but outside investors do not know. Our analysis shows that, under equity financing, the corporate insiders can signal their private ...

This article describes a methodology for evaluating information technology investments using the real options approach. IT investment projects are categorized into development and acquisition projects depending upon the time it takes to start benefiting from the IT asset once the decision to invest has been taken. A couple of models that account for uncertainty both in the costs and benefits as...