Real options and intellectual property. Capital budgeting under imperfect patent protection. (Q863110)

In this book the author proposes an integrated approach to patent risk and capital budgeting in pharmaceutical research and development (R\&D), developing an option-based view of imperfect patent protection, which draws upon contingent-claims analysis, stochastic game theory and novel numerical methods. He describes the source of patent risk, its interaction with market and technology, and also option-based models of imperfect patent protection that are more ready for practice than highly sophisticated techniques in the academic literature. He considers patenting under uncertainty, exogenous and endogenous patent risks. Some numerical methods are presented in the Appendix.