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On the property of real options and the assets that give rise to them

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Author Info
José Pablo Dapena

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Abstract

Property in financial options (derivatives) is stated and transferred through contracts, while in real options property may arise from assets under the management of the firm, without a formal contract properly defining property. Furthermore, in some situations the asset can be public, and its property shared among different agents or firms. The present paper intends to work on the mechanisms of appropriation (and hence transferability) of real options exploring the assets that give rise to them, and proposing the concept of indirect property of complementary assets. The meaning of property is explored, and also the dynamic of change between public and private assets. Finally, we develop on the features that define real options stemming from the indirect property of complementary assets.

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File URL: http://www.cema.edu.ar/publicaciones/download/documentos/210.pdf
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Publisher Info
Paper provided by Universidad del CEMA in its series CEMA Working Papers: Serie Documentos de Trabajo. with number 210.

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Date of creation: Feb 2002
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Handle: RePEc:cem:doctra:210

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Related research
Keywords: Real options; property rights; intangible assets; indirect property.;

Find related papers by JEL classification:
D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
G00 - Financial Economics - - General - - - General

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Cited by:
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  1. Henri Philippe, 2005. "Corporate Governance: A New Limit to Real Options Valuation?," Journal of Management and Governance, Springer, vol. 9(2), pages 129-149, 06. [Downloadable!] (restricted)
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