The Dixit-Pindyck and the Arrow-Fisher-Hanemann-Henry option values are not equivalent: A note on Fisher (2000)

Resource and Energy Economics

Volumn 27, Issue 1, 2005, Pages 83-88

  Mensink, Paul ^a   Requate, Till ^a  

^a UNIVERSITY OF KIEL   (Germany)

Author keywords

Decision making under uncertainty; Irreversible investment; Quasi option value; Real option value; Value of information

Indexed keywords

NUMERICAL ANALYSIS;

ARROW, FISHER, HANEMANN, AND HENRY (AFHH); QUASI-OPTION VALUE;

INDUSTRIAL ECONOMICS;

CONCEPTUAL FRAMEWORK; DECISION MAKING; INVESTMENT; THEORETICAL STUDY; UNCERTAINTY ANALYSIS;

EID: 12344267914     PISSN: 09287655     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.reseneeco.2004.04.001     Document Type: Note

References (9)

1. Arrow K.J. Fisher A.C. Environmental preservation, uncertainty, and irreversibility Quarterly Journal of Economics 88 1974 312-319
2. Dixit A.K. Investment and hysteresis Journal of Economic Perspectives 6 1992 107-132
3. Dixit, A.K., Pindyck, R.S., 1994. Investment Under Uncertainty. Princeton University Press, Princeton, NJ
4. Fisher A.C. Investment under uncertainty and option value in environmental economics Resource and Energy Economics 22 2000 197-204
5. Fisher A.C. Hanemann W.M. Quasi-option value: Some misconceptions dispelled Journal of Environmental Economics and Management 14 1987 183-190
6. Hanemann W.M. Information and the concept of option value Journal of Environmental Economics and Management 16 1989 23-37
7. Henry C. Investment decisions under uncertainty: The irreversibility effect American Economic Review 64 1974 1006-1012
8. Mensink, P., Requate, T., 2003. The Dixit-Pindyck and the Arrow-Fisher -Hanemann-Henry option values are not equivalent. Economics Working Paper No. 2003-09. University of Kiel, Kiel, Germany. http://www.ssrn.com
9. Pindyck R.S. Irreversibility, uncertainty, and investment Journal of Economic Literature 29 1991 1110-1148