Market-baser Terminology for DR

I believe there is a well-understood area of market interactions very similar to those in DR known as Real Options. Real options analysis or ROA (not to be confused with return on assets) applies put option and call option valuation techniques to capital budgeting decisions. A real option itself, is the right — but not the obligation — to undertake some business decision; typically the option to make, abandon, expand, or shrink a capital investment. For example, the opportunity to invest in the expansion of a firm's factory, or alternatively to sell the factory, is a real option.

 

 [tip of the hat to Jim Northey]

 

Read through this article from Cam Harvey at Fuqua School of Business (Duke).

http://faculty.fuqua.duke.edu/~charvey/Teaching/BA456_2002/Identifying_real_options.htm

 

 

I think we can use real options terminology across the board in EnergyInterop…

 

"Energy and persistence conquer all things." -- Benjamin Franklin 

Toby Considine
TC9, Inc

Chair, OASIS oBIX Technical Committee
OASIS Technical Advisory Board

  

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blog: www.NewDaedalus.com