Science Research Management ›› 2007, Vol. 28 ›› Issue (2): 85-92.

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A real option pricing model for R&D projects and empirical study

Wang Yixiang   

  1. School of Management, Zhejiang University, Hangzhou 310058, China
  • Received:2005-04-22 Online:2007-03-24 Published:2011-05-16

Abstract: The movement for the value of the underlying asset of R&D real options is neither purely a geometric Brownian motion,nor simply a jump process,but a combination of the both.Based on this assumption,a model more suitable for assessing real options value of R&D projects is built,and Philips′ case is adopted to carry out empirical study.

Key words: real option pricing, strategic information, R&, D project

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