Study On Autocorrelation Option Pricing Model Of Intellectual Property Rights

Intellectual property, as one of the three pillars of world trade system, has become the key factor of enterprise development ability. On the other hand, it is the ground of enhancing enterprises'competitiveness and improving their value for its going concern value. This value is created by the part of one enterprise that owned its intellectual property, while other enterprises without such property can't achieve the value. Now the value of the intellectual property can not be fully understood in practice due to the complex characteristics of itself. Especially its potential value can not be identified. Therefore, finding a way to satisfy the characteristics of intellectual property, and to fully quantify the evaluation value becomes a serious problem to solve.The important role of intellectual property was firstly analyzed, and on the basis of literature review in domestic and abroad, the purpose and significance of the research was presented. Then, the necessity of using autocorrelation option pricing model to valuate the value of intellectual property rights was put forward. Through the analysis of the characteristics of intellectual property and its benefits from the view of its environmental decision-making, the difficulties in intellectual property appraisal resulted from internal and external reasons. The value of intellectual property rights was analysed based on valuation theories. Secondly, the limitations of the traditional evaluation method– income capitalization approach, replacement cost approach and market sales comparison approach, binomial model and B - S model were discussed in intellectual property rights evaluation. Based on the characteristics of intellectual property's autocorrelation income, the autocorrelation option pricing model was introduced to identify the potential value of intellectual property. The relative methods to determine the seven parameters in this model and hypothetical tests were put forward so as to provide a way for practical applications. Finally, example analysis showed the applicability and rationality of this method.According to the study, due to the characteristics of the intellectual property, especially the value collaborative and monopolistic characteristic, it's value structure still includes the extra value besides the profit value. Extra value includes strategic value and potential tactical value. Current valuation methods can only assess the former two value, while ignoring the potential tactical value which is derived from the accumulation of flexible management. Autocorrelation options pricing model considers the correlation of the returns of underlying assets. Because the autocorrelation features can be found in the returns of the intellectual property, the comprehensive value including potential value of intellectual property can be well assessed with autocorrelation options pricing model. It can be proved that using the D-W statistics is more effective to calculate the historical influence coefficient which is the measure of the potential value.Autocorrelation option evaluation model can fit it in the characteristics of intellectual property and its returns. It considers all the value accumulation process, thus the comprehensive value can be obtained. Autocorrelation option evaluation model provides a feasible choice for intellectual property valuation.