To read this content please select one of the options below:

Valuing intellectual capital using game theory

Stephen Chen (Future Economics, London, UK)

Journal of Intellectual Capital

ISSN: 1469-1930

Article publication date: 1 June 2003

4505

Abstract

Although many schemes for valuing intellectual capital have been suggested in recent years, existing methods are difficult to link to stock market valuations and to business strategy. This paper illustrates how options theory and game theory may be usefully combined to value intellectual capital in strategic scenario planning. First, illustrations are given of how option theory and game theory can help assess the “hidden” value of intellectual capital in different strategic scenarios. Second, some game theoretic scenarios are used to suggest ways in which intellectual capital may be used strategically. This suggests that intellectual capital has particular characteristics that need to be considered in developing a strategy based on intellectual capital as opposed to a strategy based on other firm resources.

Keywords

Citation

Chen, S. (2003), "Valuing intellectual capital using game theory", Journal of Intellectual Capital, Vol. 4 No. 2, pp. 191-201. https://doi.org/10.1108/14691930310472811

Publisher

:

MCB UP Ltd

Copyright © 2003, MCB UP Limited

Related articles