Valuing Infrastructure Investment: an option games approach
AuthorSmit, Han T. J.
SourceCalifornia management review
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The article discusses infrastructure investment for business enterprises, describing and analyzing an infrastructure development methodology called option games. The option games methodology integrates real options valuation with game theory principles, the authors state. Infrastructure investment can include land, distribution systems, or information technology. The authors apply the option games methodology to evaluating the expansion options available to the Schiphol airport in The Netherlands.