Artikel
Modeling sequential R&D investments: A binomial compound option approach
In this paper, we propose a binomial approach to modeling sequential R&D investments. More specifically, we present a compound real options approach, simplifying the existing valuation methodology. Based upon the same set of assumptions as prior models, we show that the number of computational steps for valuing any compound option can be reduced to a single step. We demonstrate the applicability of our approach using the real-world example of valuing a new drug application. Overall, our work provides a heuristic framework for fostering the adoption of binomial compound option valuation techniques in R&D management.
- Sprache
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Englisch
- Erschienen in
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Journal: Business Research ; ISSN: 2198-2627 ; Volume: 8 ; Year: 2015 ; Issue: 1 ; Pages: 39-59 ; Heidelberg: Springer
- Klassifikation
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Management
Management of Technological Innovation and R&D
Portfolio Choice; Investment Decisions
- Thema
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Research and development
Real options
Compound options
Resource allocation
Binomial model
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Hauschild, Bastian
Reimsbach, Daniel
- Ereignis
-
Veröffentlichung
- (wer)
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Springer
- (wo)
-
Heidelberg
- (wann)
-
2015
- DOI
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doi:10.1007/s40685-014-0017-5
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Artikel
Beteiligte
- Hauschild, Bastian
- Reimsbach, Daniel
- Springer
Entstanden
- 2015
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