A Real Options Approach to Contractual Agreements and Value Flexibility
Abstract
Contracts are usually analyzed in the light of the reduction of transaction costs that they may ensure. But this disregards the advantages of strategic flexibility in business relations. In this paper we consider a model of provider-client relation and see how flexibility in the contract (seen as a combination of a put and a call option) ensures a higher payoff to the involved parties.
Full Text: PDF DOI: 10.15640/smq.v2n3-4a5
Abstract
Contracts are usually analyzed in the light of the reduction of transaction costs that they may ensure. But this disregards the advantages of strategic flexibility in business relations. In this paper we consider a model of provider-client relation and see how flexibility in the contract (seen as a combination of a put and a call option) ensures a higher payoff to the involved parties.
Full Text: PDF DOI: 10.15640/smq.v2n3-4a5
Browse Journals
Journal Policies
Information
Useful Links
- Call for Papers
- Submit Your Paper
- Publish in Your Native Language
- Subscribe the Journal
- Frequently Asked Questions
- Contact the Executive Editor
- Recommend this Journal to Librarian
- View the Current Issue
- View the Previous Issues
- Recommend this Journal to Friends
- Recommend a Special Issue
- Comment on the Journal
- Publish the Conference Proceedings
Latest Activities
Resources
Visiting Status
 Today |
115 |
| Yesterday |
66 |
| This Month |
2586 |
| Last Month |
2736 |
 All Days |
951984 |
 Online |
11 |
