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Publication date: 25 March 2010

S.B. von Helfenstein

As global economic systems become increasingly more complex and dynamic and the universal language of historical accounting is being profoundly altered, the theory and tools we…

Abstract

As global economic systems become increasingly more complex and dynamic and the universal language of historical accounting is being profoundly altered, the theory and tools we use in neo-classical economics, traditional finance, and valuation are beginning to prove inadequate to the tasks being required of them. Hence, there is a need to consider new avenues of thought and new tools. In this conceptual chapter, I explore the use of real options “in” engineering systems design as a means to achieve more rigorous and insightful results in the design and valuation of economic systems, particularly that of the firm. In the process, I gain further insight into the causes and cures for systemic disturbances generated by the presence and selection of real options in economic systems.

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Research in Finance
Type: Book
ISBN: 978-1-84950-726-4

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