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Real Options Methodology Applied to the ICT Sector: A Survey

Author

Listed:
  • James ALLEMAN

    (University of Colorado & Columbia University)

  • Gary MADDEN

    (Curtin University of Technology & Columbia University)

  • Hak KIM

    (University of Houston at Clear Lake)

Abstract

This survey focuses on the application of real options methodology to the information and communications technology (ICT) industries. It examines the development of the methodology to areas as diverse as wireless cell site investments to dynamic pricing issues. In addition to aiding the reader in understanding the breadth of the applications, it demonstrates the importance of the topic. It provides a guide to the reader who is interested in exploring the topic in greater depth.

Suggested Citation

  • James ALLEMAN & Gary MADDEN & Hak KIM, 2008. "Real Options Methodology Applied to the ICT Sector: A Survey," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(70), pages 27-44, 2nd quart.
    • Handle: RePEc:idt:journl:cs7002
    as

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    File URL: http://repec.idate.org/RePEc/idt/journl/CS7002/CS70_ALLEMAN_et_al.pdf
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    References listed on IDEAS

    as
    1. Robert S. Pindyck, 2005. "Pricing Capital Under Mandatory Unbundling and Facilities Sharing," NBER Working Papers 11225, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Tselekounis, Markos & Varoutas, Dimitris & Martakos, Drakoulis, 2014. "A CDS approach to induce facilities-based competition over NGA networks," Telecommunications Policy, Elsevier, vol. 38(3), pages 311-331.
    2. George Charalampopoulos & Dimitris Katsianis & Dimitris Varoutas, 2022. "Economic replicability tests: an “out-of-the-box” implementation," Netnomics, Springer, vol. 22(2), pages 115-138, October.
    3. Henning Never, 2010. "Risk Sharing for Next Generation Access Networks – Necessary Adjustments of the Present European Regulatory Framework for Electronic Communication Networks and Services," Chapters, in: Morten Falch & Jan Markendahl (ed.), Promoting New Telecom Infrastructures, chapter 9, Edward Elgar Publishing.

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    More about this item

    Keywords

    Discounted cash flow; economic methodology; information and communications technology (ICT); investment; investment under uncertainty; options; present discounted value; real options; valuations.;
    All these keywords.

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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