European option based R\&D investment decision making under uncertainties (Q1664669)

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scientific article; zbMATH DE number 6925516
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    European option based R\&D investment decision making under uncertainties
    scientific article; zbMATH DE number 6925516

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      European option based R\&D investment decision making under uncertainties (English)
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      27 August 2018
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      Summary: This paper establishes the payoff models of the European option for research and development (R\&D) projects with two enterprises in a research joint venture (RJV). The models are used to assess the timing and payoffs of the R\&D project investment under quantified uncertainties. After the option game, the two enterprises can make optimal investment decision for the R\&D project investment in the RJV.
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