Option value: theory and measurement
Open Access
- 1 June 1990
- journal article
- Published by Oxford University Press (OUP) in European Review of Agricultural Economics
- Vol. 17 (2) , 167-180
- https://doi.org/10.1093/erae/17.2.167
Abstract
In this paper we provide a theoretical review of option value and its relationship to a more familiar concept in decision analysis, the value of information. We further show how option value might be measured with the aid of a partly realistic and partly hypothetical example. Finally, we consider how contingent valuation techniques might be used to estimate option value.Keywords
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