Improved real option analysis based on fuzzy random variables

Bo Wang, Shu Ming Wang, Junzo Watada

    Research output: Chapter in Book/Report/Conference proceedingConference contribution

    2 Citations (Scopus)

    Abstract

    The objective of this paper is to build a real options model under hybrid uncertain environment of randomness and fuzziness. In order to well describe the real uncertain situation, we utilize fuzzy random variable as a tool to characterize future cash flows, and propose a new real options analysis approach by combing binomial lattice-based model with fuzzy random variable, as named fuzzy random real options analysis (FR-ROA). Then the proposed FR-ROA is applied to an R&D project problem under fuzzy random environment, and the relations of FR-ROA with the classical ROA and the fuzzy ROA are explicitly discussed, respectively.

    Original languageEnglish
    Title of host publicationProceedings of the 2009 International Conference on Machine Learning and Cybernetics
    Pages694-699
    Number of pages6
    Volume2
    DOIs
    Publication statusPublished - 2009
    Event2009 International Conference on Machine Learning and Cybernetics - Baoding
    Duration: 2009 Jul 122009 Jul 15

    Other

    Other2009 International Conference on Machine Learning and Cybernetics
    CityBaoding
    Period09/7/1209/7/15

    Fingerprint

    Random variables

    Keywords

    • Binomial lattice-based model
    • Future cash flow
    • Fuzzy random variable
    • Real options analysis

    ASJC Scopus subject areas

    • Artificial Intelligence
    • Computer Vision and Pattern Recognition
    • Software
    • Control and Systems Engineering

    Cite this

    Wang, B., Wang, S. M., & Watada, J. (2009). Improved real option analysis based on fuzzy random variables. In Proceedings of the 2009 International Conference on Machine Learning and Cybernetics (Vol. 2, pp. 694-699). [5212448] https://doi.org/10.1109/ICMLC.2009.5212448

    Improved real option analysis based on fuzzy random variables. / Wang, Bo; Wang, Shu Ming; Watada, Junzo.

    Proceedings of the 2009 International Conference on Machine Learning and Cybernetics. Vol. 2 2009. p. 694-699 5212448.

    Research output: Chapter in Book/Report/Conference proceedingConference contribution

    Wang, B, Wang, SM & Watada, J 2009, Improved real option analysis based on fuzzy random variables. in Proceedings of the 2009 International Conference on Machine Learning and Cybernetics. vol. 2, 5212448, pp. 694-699, 2009 International Conference on Machine Learning and Cybernetics, Baoding, 09/7/12. https://doi.org/10.1109/ICMLC.2009.5212448
    Wang B, Wang SM, Watada J. Improved real option analysis based on fuzzy random variables. In Proceedings of the 2009 International Conference on Machine Learning and Cybernetics. Vol. 2. 2009. p. 694-699. 5212448 https://doi.org/10.1109/ICMLC.2009.5212448
    Wang, Bo ; Wang, Shu Ming ; Watada, Junzo. / Improved real option analysis based on fuzzy random variables. Proceedings of the 2009 International Conference on Machine Learning and Cybernetics. Vol. 2 2009. pp. 694-699
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