Based On Option Game Highway Bot Project Investment Decision-making Research

Highway construction is capital-intensive industry, and how to raise enough money is the key to highway construction. With the expansion of international markets, international cooperation, constantly enhance the number of new financing models and financing methods continue to come out. The BOT model representative of the new financing model in the international community received wide attention, and into China this year, have seen significant development, are increasingly being used in infrastructure construction. However, highway BOT project has a huge amount of investment and long payback period, uncertainty, investment irreversibility characteristic of this investment decision-makers to bring certain difficulties. Clearly, the simple method of relying on the traditional investment decision-making is unable to meet the complex highway BOT project investment decisions.This in-depth study of highway BOT project options and game features, and on this basis were established model and empirical analysis, to a certain extent, effective solution to the highway BOT project, the uncertainty and competitive investment the impact of decision-making. This article first analyzes the theoretical basis to analyze the real options and option game theory in investment decisions such as the application is feasible. In the following sections, this paper discusses highway investment decision-making characteristics of BOT projects, and analyzes and discusses the traditional methods of investment decision-making limitations. Next is the core of this article, first introduced in the existing highway BOT project delay option and it is calculated. Using this method can estimate about when the investment projects in the most favorable, and can calculate the approximate delay options, and can use more than the benefits obtained. Then this paper introduces the existing expressway BOT project in the option game features, namely growth options to the government and the impact of the project company. In this section, the concession period as the Government's decision variables, using the methods of the project option game in the Government to determine the concession of BOT projects under the investment behavior of established franchises and the construction of the cost of investment decision model decision-making model, operating costs discussed the impact of the concession period, with examples that the model is feasible. In short, the article fully explore the impact of the game features and the option of the project to the corporate and government, and provided an effective basis to the project company and government decision-making.