Real Options: The Value Added through Optimal Decision Making
One of the primary responsibilities of a management team is to make decisions during the execution of projects so that gains are maximized and losses are minimized. Decision analysis is especially critical for projects with built-in flexibility, or options. This article explores how merging decision analysis with the well-known principles used in valuing options on financially traded assets can be further enhanced by applying an … [ Read more ]
Content: Article | Authors: Luiz E. Brando PhD, Warren J. Hahn PE PhD | Source: Graziadio Business Report | Subjects: Finance, Management
The Winner’s Curse and Optimal Auction Bidding Strategies
Auctions are popular mechanisms for the exchange of goods and services in the marketplace. Common examples of items offered at auctions include real estate, mineral rights, construction contracts, agricultural products, United States Treasury bills, and government procurement contracts. Auctions are now even more commonplace in our personal lives, where online auction sites have made it possible for individuals to bid for and sell items en … [ Read more ]
Content: Article | Authors: Samuel L. Seaman PhD, Warren J. Hahn PE PhD | Source: Graziadio Business Report | Subjects: Management, Miscellaneous