Study On Human Capital Pricing Based On Real Options

In the agriculture age, the land is the symbol of wealth; In the industrial age, thecapital is the symbol of wealth; In the era of knowledge economy, economic growth isno longer limited by the land or material capital, but by the human capital ofknowledge production and consumption. Concepts of "capital to wage" are challengedby "human capital theory". At present, the value and function of human capital hasreached preliminary consensus. However, the theoretical circle has not yet reached aconsensus on the measurement of the value of human capital. Most methods can nothave a complete response of human capital value. Reasonable prices are importantmeans to fully arouse the enthusiasm of human capital owner. The essay applied thetheory of real option, taking research methods of theoretical analysis and case study,discussed the issue of human capital pricing and its application.This article discussed the theory of human capital property rights and the theoryof real option theory and pointed out that human capital pricing process is a dynamicprocess, with real option pricing model, you can more accurately estimate the decisionfacing the opportunity or flexibility. In the main part of the paper, this paper discussedthe flaws of the traditional pricing model of human capital, and created a dynamichuman capital based on real option pricing model. Articles concluded that evaluates tothe value of human capital based on real option is greater than the value based ontraditional pricing model of human capital value by analyzing the case. It is mainlydue to that the new model has the option value of human capital, which reflects theimportant role of human capital in the creation of value, and this can be useful forsocial and enterprise to increase investment in human capital.