Using real options discipline for highly uncertain technology investments

Research Technology Management

Volumn 49, Issue 1, 2006, Pages 29-37

  MacMillan, Ian C ^a,b,c   Van Putten, Alexander B ^b   McGrath, Rita Gunther ^d   Thompson, James D ^e,f  

^a Wharton Entrepreneurial Center   (United States)

^b UNIVERSITY OF PENNSYLVANIA   (United States)

^c Department of Innovation and Entrepreneurship ^*  (United States)

^d The Sanford C Bernstein Co Center for Leadership and Ethics   (United States)

^e Wharton Entrepreneurial Programs   (United States)

^f Center's Technology Commercialization   (United States)

Author keywords

Discovery driven planning; Real options; Uncertainty; Valuation

Indexed keywords

COST EFFECTIVENESS; ECONOMIC AND SOCIAL EFFECTS; PLANNING; PROJECT MANAGEMENT;

DISCOVERY-DRIVEN PLANNING; REAL OPTIONS; UNCERTAINTY; VALUATION;

INVESTMENTS;

EID: 33646385360     PISSN: 08956308     EISSN: None     Source Type: Journal    
DOI: 10.1080/08956308.2006.11657356     Document Type: Article

References (3)

1. Checkpoint is a trademark of Triad Consultants, Ltd. Crystal Ball is a trademark of Decisioneering, Inc.
2. A. van Putten and I. MacMillan. "Making Real Options Really Work. Harvard Business Review December 2004, pp. 131-141.
3. An alternative approach would be to use a Binomial Lattice, but this too does not penalize high cost uncertainty.