Research On Real Estate Investment Based On The Theory Of Option Games

Real estate is to promote the rapid development of China's economy one of the pillar industries, and its distinguishing feature is the high-risk and high yield, and thus scientific and effective investment decisions is very important.Before the real estate project development, business investment in order to achieve its strategic goals is expected, will conduct a feasibility study project, which would set out a number of investment programs. Investment decision-makers will have to demonstrate the program to select the most sound investment program. Therefore, accurate real estate investment decision-making depends not only on the ability of individual decision-makers, but also investment decisions and application of scientific evaluation method has a close relationship.Evaluation of the field of corporate investment decision analysis after years of research scholars has been increasingly perfect. This paper discusses the method of investment appraisal process, has always been applied in detail the advantages and disadvantages of investment evaluation. Comparative validation of the advanced options and practical game theory, and its reference in real estate development project investment evaluation.After the real estate options and game applicability of the similarity analysis, evaluation options game provides the basis for practical application. One real option theory to evaluate the project value uncertainty and management flexibility, and game theory analysis of competition between enterprises is the strategic value, so that policy makers can better determine the exact value of real estate projects.Finally, details the duopoly game model of the application process option. Establish a market demand and investment cost for the two key uncertainties of random variables leading duopoly - followers of game model, in different locations of the real estate market value of the business functions and the value of option value best execution, so as to provide decision-makers Bear with accuracy the value of the project and optimal timing of investment proposals for investment decisions. Option Game Ratings shows that deal with real estate projects is a more scientific and reasonable uncertainty on investment evaluation.