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High-speed rail transport valuation

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Bibliographic Details
Summary:In this paper, the optimal timing for investing in high-speed rail projects under uncertainty in relation to the utility provided to railway users was investigated. To accomplish this, a continuous time real options analysis framework using a stochastic demand model was developed to determine the optimal time to invest. Uncertainty upon investment expenditures was also added in an extended framework. The value of the option to defer and the investment opportunity value were also assessed
Main Authors:Pimentel, Pedro Miguel
Other Authors:Pereira, José Azevedo; Couto, Gualter
Subject:Real Options Uncertainty Timing Waiting Investment High-Speed Rail
Year:2012
Country:Portugal
Document type:article
Access type:open access
Associated institution:Universidade de Lisboa
Language:English
Origin:Repositório da Universidade de Lisboa
Description
Summary:In this paper, the optimal timing for investing in high-speed rail projects under uncertainty in relation to the utility provided to railway users was investigated. To accomplish this, a continuous time real options analysis framework using a stochastic demand model was developed to determine the optimal time to invest. Uncertainty upon investment expenditures was also added in an extended framework. The value of the option to defer and the investment opportunity value were also assessed