Research On Intellectual Property Value Based On Real Option

With the approval of knowledge-paid era,people increasingly highlight the protection of property right and pay more emphasis on mental work.As an intangible asset,the price of intellectual property deviates specific investment assets,which is difficult to be estimated.The traditional intellectual property evaluation approaches include cost approach,market approach,income approach and the third one is universally applied.However,the traditional approaches lack the consideration of uncertain opportunity values during an intellectual property investment so that they can't be applied to evaluate the value of intellectual property correctly.As a new method of sorting out uncertainties,real options play an important role in an evaluation of the value of intellectual property.The paper chooses the value of intellectual property as a research object based on types of investors' rights.The main work is as following:The paper portrays the principles of the choice of model parameters in detail,putting forward the establishment of option models and option models that discard exit mechanism,utilizing the method of contingent claims analysis for a solution process,using Monte Carlo method to make the possible path of option value for the model if investors of intellectual property have only rights to postpone investments.Moreover,the paper discusses the effect of opportunity cost,the investment cost,the risk volatility and the risk-free interest to the value of intellectual property and option based on the model solution.Considering investors possess investment options at a critical point of investment and abandon options at a critical point of abandonment if intellectual investors possess rights of postponing and withdrawing investment,the paper establishes option value models regarding exit mechanism.Aiming at two types of investors(according to whether investors possess ownership of intellectual property or not),the paper also discusses two different investment advice.In a condition where investors possess rights of postponing investment and expansion investment,the formula for pricing expansion investment is defined when considering original investment benefits.Then expected time is evaluated given original investments and expected investment benefits.Finally,the paper analyses the effect of parameters to expected time based on an evaluation of expected time of threshold of expansion investment.