The goal of this paper is to analyse and systematise the possible approaches real options valuation, especially when considering practical aspects their application in real-life valuation problems. Therefore, sets following tasks: To outline concept fair value traditional its calculation context asset define real-option approach estimation theoretical background determine role system techniques...

We investigate a common value bilateral bargaining model with two sided private information and no aggregate uncertainty. A seller owns an asset whose common valuation is a deterministic function of the two traders’private signals. We …rst establish a no-trade theorem for this environment, and proceed to study the e¤ect of the asset valuation structure and the trading mechanism on extent to whi...

I explore the value implications of economic models by highlighting what features persist in the long-term. I accomplish this by developing a decomposition of valuation dynamics (DVD). I use it to distinguish components of an underlying economic model that influence values over long horizons from components that impact only the short run. I apply my approach to study example economies from the ...

GAAP mandates a variety of departures from historical cost asset valuation. Here we o¤er a simple model that leads to such variety, depending on regulatory objectives and the magnitude of various economic forces. The central feature of the model is entrepreneurial investment in an asset followed by private information that cannot be communicated. A lemons problem arises in the asset resale mark...