Research On Real Options Pricing Methods Under Option Games

As the development of the worldwide economy, especially the development of global integration, the economy of our country is growing in a great speed, the investments is in high frequency and the amount is becoming increasingly enormous. Therefore it is very important to make the investment operate all rightln allusion to drawbacks of the traditional DCF project pricing method, Myer(1977) and Ross(1978) advanced the real option pricing methods to appraise the flexibility of a investmen projectThe later generations improve the methods in many aspects, they try to apply the finance option pricing method to real option and the methods were used broadly. In existing real option pricing model, the investor is regarded as the only owner of the real option. But in fact since the real option is oftert owned by more than one investor and is not definitely monopolized, the competition of the investors should influence the real option value. The traditional real option pricing methods ignore this influence.Mainly due to the lack research of home and abroad, this dissertation begins with analysis and classification of real option. Since the real option is often owned by more one investors and is not definitely monopolized, the competition of the investors should influence the real option value.In this paper, we consider this situation and firstly divide the real option into two kinds: monopolized real option and participating real option according to whether there are more than one owner of one real option. Then we continuously divide the participating real option into the other two kinds: privileged real option and sharing real option.Then we use Cournot Double-edgedMonopoly model, Stackellberg model under complete information and real option theory to analyze the value of sharing real option and privileged real option. At last, in order to spread real option method under games to application layer and not limited on theory, the author gives examples one by one in allusion to the methods. The author uses real option pricing method, Coumot Double-edged Monopoly model and Stackellberg model under complete information etcReal option provides a new thought-way and probability of investment project value appraisal. Discussing of real option pricing methods on games have great importance in theory and application to exactly appraising project value and scientific decision of investment.