Investment under uncertainty in information technology: Acquisition and development projects

Management Science

Volumn 49, Issue 1, 2003, Pages 57-70

  Schwartz, Eduardo S ^a   Zozaya Gorostiza, Carlos ^b  

^a UNIVERSITY OF CALIFORNIA   (United States)

^b INSTITUTO TECNOLÓGICO AUTÓNOMO DE MÉXICO   (Mexico)

Author keywords

Acquisition and development projects; Information technology; Investment under uncertainty; Real options

Indexed keywords

COMPUTER SIMULATION; COST BENEFIT ANALYSIS; COSTS; DECISION MAKING; INVESTMENTS; PROJECT MANAGEMENT;

ACQUISITION AND DEVELOPMENT PROJECTS; INVESTMENT UNDER UNCERTAINTY; REAL OPTIONS;

INFORMATION TECHNOLOGY;

EID: 0037284628     PISSN: 00251909     EISSN: None     Source Type: Journal    
DOI: 10.1287/mnsc.49.1.57.12753     Document Type: Article

References (22)

1. Amram, M., N. Kulatilaka. 1999. Real Options: Managing Strategic Investment in an Uncertain World. Harvard Business School Press, Boston, MA.
2. Benaroch, M., R. J. Kauffman. 1999. A case for using real options pricing analysis to evaluate information technology project investments. Inform. Systems Res. 10(1) 70-86.
3. ____, ____. 2000. Justifying electronic banking network expansion using real options analysis. MIS Quart. 24(2) 197-225.
4. Black, F., M. Scholes. 1973. The pricing of options and corporate liabilities. J. Political Econom. 81 637-654.
5. Bodie, Z., R. C. Merton. 1999. Finance. Prentice-Hall, Englewood Cliffs, NJ.
6. Brennan, M. J., E. S Schwartz. 1985. Evaluating natural resource investments. J. Bus. 58(2) 135-157.
7. Dixit A. K., R. S. Pindyck. 1994. Investment Under Uncertainty. Princeton University Press, Princeton, NJ.
8. Grenadier, S. R., A. M. Weiss. 1997. Investment in technological innovations: An option pricing approach. J. Financial Econom. 44(3) 397-416.
9. Ingersoll, J. E., S. A. Ross. 1992. Waiting to invest: Investment and uncertainty. J. Bus. 65(1) 1-29.
10. Kumar, R. L. 1996. A note on project risk and option values of investments in information technologies. J. Management Inform. Systems 13(1) 187-193.
11. ____. 1999. Understanding DSS value: An options perspective. Omega, The Internat. J. Management Sci. 27 295-304.
12. Lucas, H. C. 1999. Information Technology and the Productivity Paradox. Oxford University Press, New York.
13. Luehrman, T. A. 1998. Investment opportunities as real options: Getting started on the numbers. Harvard Bus. Rev. 76(4) (July-August) 51-67.
14. Margrabe, W. 1978. The value of an option to exchange one asset for another. J. Finance 33 (March) 177-186.
15. McDonald, R. L., D. Siegel. 1986. The value of waiting to invest. Quart. J. Econom. 101(4) 707-727.
16. McGrath, R. G. 1997. A real options logic for initiating technology positioning investments. Acad. Management Rev. 22(4) 974-996.
17. OECD (Organization for Economic Cooperation and Development). 1997. Information Technology Outlook. OECD Publications, Paris, France.
18. Panayi, S., L. Trigeorgis. 1998. Multi-stage real options: The cases of information technology infrastructure and international bank expansion. Quart. Rev. Econom. Finance 38 (Special Issue) 675-692.
19. Pindyck, R. S. 1993. Investments of uncertain cost. J. Financial Econom. 34 53-76.
20. Press, W. H., Teukolsky. 1992. Numerical Recipes in Fortran: The Art of Scientific Computing, 2nd ed. Cambridge University Press, Cambridge, MA.
21. Schwartz, E. S., M. Moon. 2000. Evaluating research and development investments. Project Flexibility, Agency, and Competition. M. J. Brennan, L. Trigeorgis, eds. Oxford University Press, New York, 85-106.
22. Taudes, A., M. Feurstein, A. Mild. 2000. Options analysis of software platform decisions: A case study. MIS Quart. 24(2) 227-243