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

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  • José Pablo Dapena

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.

Suggested Citation

  • José Pablo Dapena, 2002. "On the property of real options and the assets that give rise to them," CEMA Working Papers: Serie Documentos de Trabajo. 210, Universidad del CEMA.
    • Handle: RePEc:cem:doctra:210
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    File URL: https://www.ucema.edu.ar/publicaciones/download/documentos/210.pdf
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    References listed on IDEAS

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    1. Barzel,Yoram, 1997. "Economic Analysis of Property Rights," Cambridge Books, Cambridge University Press, number 9780521597135, February.
    2. Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, number 5474.
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    Cited by:

    1. Henri Philippe, 2005. "Corporate Governance: A New Limit to Real Options Valuation?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 9(2), pages 129-149, June.

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    Keywords

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    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • G00 - Financial Economics - - General - - - General

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