Real option model sensitivity analysis in mineral resources investment

Author(s):  
Tan Wenbo ◽  
Liu Haibin ◽  
Zhang Wei
2014 ◽  
Vol 2014 ◽  
pp. 1-11 ◽  
Author(s):  
Jian-bai Huang ◽  
Na Tan ◽  
Mei-rui Zhong

As for uncertainties and decision-makers’ overconfidence psychological bias, overconfidence has been incorporated into real option decision-making model of metal mineral resources mining to estimate its effect on decision-making of the project and thus a behavioral real option decision-making model of metal mineral resources mining based on overconfidence has been established. Furthermore, numerical simulation and sensitivity analysis have been conducted to verify the practicality of the model. Results show that model in this paper has greatly changed trigger value and option value of mineral resources mining project compared with traditional real option model, thus greatly changing optimal decision results. Incorporating overconfidence into real option decision-making model of metal mineral resources development is a crucial extension of project evaluation theory.


2004 ◽  
Vol 09 (01) ◽  
Author(s):  
Lorella Cannavacciuolo ◽  
Luigi Iervolino ◽  
Luca Iandoli ◽  
Giuseppe Zollo
Keyword(s):  

2021 ◽  
Vol 60 (6) ◽  
pp. 5227-5243
Author(s):  
Sze Qi Chan ◽  
Fazlina Aman ◽  
Syahira Mansur

2011 ◽  
Vol 12 (1) ◽  
pp. 5-14 ◽  
Author(s):  
Adishwar K. Jain ◽  
Raymond A.K. Cox

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