IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Computing Competencies Value Through A Fuzzy Real Option Model

Listed author(s):
  • Cannavacciuolo, Lorella
  • Iervolino, Luigi
  • Iandoli, Luca
  • Zollo, Giuseppe

    (University of Naples Federico II)

Registered author(s):

    This paper presents a fuzzy real option model for the estimation of the value of an investment in individual compe-tencies. The use of the real option technique is justified on the basis of the following hypotheses: i) either deve-loping or acquiring a competency is a financial investment; ii) the value of such an investment can be estimated by assuming that the decision made by a firm either to develop or acquire an individual competency can be consi-dered as buying an option today that will allow the firm itself to exploit a market opportunity in the future by implementing a new productive process Pj; iii) the uncertainty concerning the future value of an investment can be evaluated through a fuzzy model for the estimation of the volatility of the investment itself. Traditional models proposed in literature for the estimation of the volatility are unable to cope with the lack of historical and reliable data that are usually available in financial investments. Second, those models can manage only uncertainty of probabilistic nature. The model proposed attempts to estimate the volatility of an invest-ment when the uncertainty come from possibilistic sources and data are given by imprecise estimations given by human experts assessing the benefits deriving form the implementation of new productive processes.

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Article provided by International Association for Fuzzy-set Management and Economy (SIGEF) in its journal FUZZY ECONOMIC REVIEW.

    Volume (Year): IX (2004)
    Issue (Month): 1 (May)
    Pages: 3-18

    in new window

    Handle: RePEc:fzy:fuzeco:v:ix:y:2004:i:1:p:3-18
    Contact details of provider: Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:fzy:fuzeco:v:ix:y:2004:i:1:p:3-18. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Aurelio Fernandez)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.