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https://doi.org/10.17535/crorr.2018.0003

Real Options in Irreversible Investment under Uncertainty: a Review

Esosa Enoyoze ; Edo University, Iyamho, Nigeria
Sunday E. Omosigho   ORCID icon orcid.org/0000-0003-3619-4604 ; University of Benin, Benin City, Nigeria

Puni tekst: engleski, pdf (3 MB) str. 25-35 preuzimanja: 239* citiraj
APA 6th Edition
Enoyoze, E. i Omosigho, S.E. (2018). Real Options in Irreversible Investment under Uncertainty: a Review. Croatian Operational Research Review, 9 (1), 25-35. https://doi.org/10.17535/crorr.2018.0003
MLA 8th Edition
Enoyoze, Esosa i Sunday E. Omosigho. "Real Options in Irreversible Investment under Uncertainty: a Review." Croatian Operational Research Review, vol. 9, br. 1, 2018, str. 25-35. https://doi.org/10.17535/crorr.2018.0003. Citirano 05.08.2021.
Chicago 17th Edition
Enoyoze, Esosa i Sunday E. Omosigho. "Real Options in Irreversible Investment under Uncertainty: a Review." Croatian Operational Research Review 9, br. 1 (2018): 25-35. https://doi.org/10.17535/crorr.2018.0003
Harvard
Enoyoze, E., i Omosigho, S.E. (2018). 'Real Options in Irreversible Investment under Uncertainty: a Review', Croatian Operational Research Review, 9(1), str. 25-35. https://doi.org/10.17535/crorr.2018.0003
Vancouver
Enoyoze E, Omosigho SE. Real Options in Irreversible Investment under Uncertainty: a Review. Croatian Operational Research Review [Internet]. 2018 [pristupljeno 05.08.2021.];9(1):25-35. https://doi.org/10.17535/crorr.2018.0003
IEEE
E. Enoyoze i S.E. Omosigho, "Real Options in Irreversible Investment under Uncertainty: a Review", Croatian Operational Research Review, vol.9, br. 1, str. 25-35, 2018. [Online]. https://doi.org/10.17535/crorr.2018.0003

Sažetak
The use of real options approach to determine the optimal time to execute irreversible investment under uncertainty has been studied extensively. Several relationships between uncertainty and irreversible investment has been proposed. We review the literature with the aim of answering the following questions: (i) What is the inadequacy in the methods used to solve the optimal timing problem in real options analysis for irreversible investment? (ii) What is the relationship between uncertainty and irreversible investment? (iii) How do you choose the stochastic process to incorporate in a real options analysis of an irreversible investment? Based on our study we clarify the apparent ambiguity in the relationship between uncertainty and irreversible investment and present four fundamental relationships between uncertainty and irreversible investment. Guidelines for selecting appropriate stochastic processes to include in an empirical study of an irreversible investment are suggested and some possible future directions of research are charted.

Ključne riječi
irreversible investment; uncertainty; real options; stochastic process

Hrčak ID: 203891

URI
https://hrcak.srce.hr/203891

Posjeta: 487 *