Abstract
An example of an option associated with operating flexibility in electric power production and a real options approach to valuing the option are presented. This approach is contrasted with the standard discounted cash flow approach and a pure financial option valuation approach. Some connections between electric power and telecommunications are drawn, and lessons for the telecommunications industry are highlighted.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1999 Kluwer Academic Publishers
About this chapter
Cite this chapter
Strauss, T. (1999). Real options: What telecommunications can learn from electric power. In: Alleman, J., Noam, E. (eds) The New Investment Theory of Real Options and its Implication for Telecommunications Economics. Topics in Regulatory Economics and Policy, vol 34. Springer, Boston, MA. https://doi.org/10.1007/978-0-585-33314-4_4
Download citation
DOI: https://doi.org/10.1007/978-0-585-33314-4_4
Publisher Name: Springer, Boston, MA
Print ISBN: 978-0-7923-7734-4
Online ISBN: 978-0-585-33314-4
eBook Packages: Springer Book Archive