European Option Based R&D Investment Decision Making under Uncertainties

الملخص EN

This paper establishes the payoff models of the European option for research and development (R&D) projects with two enterprises in a research joint venture (RJV).

The models are used to assess the timing and payoffs of the R&D project investment under quantified uncertainties.

After the option game, the two enterprises can make optimal investment decision for the R&D project investment in the RJV.