A REAL OPTIONS APPROACH TO THE VALUATION OF SWITCH BENEFITS BETWEEN MANUAL TOLL COLLECTION AND ETC FOR FREEWAYS

Yu-Hong Liu ； I-Ming Jiang ； Ying-Ming Yen

《Advances in Financial Planning and Forecasting》 7期 (2016/10) Pp. 317-342

https://doi.org/10.6292/AFPF.2016.07.14

摘要

The valuation of new investments in the freeway system represents a case of strategic decision making under conditions of uncertainty, such as when to build, abandon, expand, and exchange parts of system. This is the case for the valuation of freeway tolls in Taiwan, where real options (switching option) apply to decision making when a new toll collection method (Electronic Toll Collection, hereafter, ETC) can be used to substitute for the existing Manual Toll Collection. The principle objective of this study is to introduce a technology switching option which allows a freeway system to exchange an existing technology (Manual Toll Collection) for a new technology (ETC). This study tests the model on a panel of data collected from the Taiwan Area National Freeway Bureau (TANFB). The empirical results show that ETC tunnel significantly affects user perceptions of the ideal type of toll-stations.

關鍵字

Real Options ； Electronic Toll Collection (ETC) ； Manual Toll Collection

參考文獻

Black, F.,Scholes, M.(1973).The pricing of options and corporate liabilities.Journal of Political Economy.81,637-654.

Bloom, N.,Van Reenen, J.(2002).Patents, real options and firm performance.Economic Journal.112,C97-C116.

Blundell, R.,Griffith, R.,Van Reenen, J.(1999).Market share, market value and innovation in a panel of British manufacturing firms.Review of Economic Studies.66,529-554.

Cheng, J. T. S.,Jiang, I. M.,Liu, Y. H.(2015).Technological innovation, product life cycle and market power: A real options approach.International Journal of Information Technology & Decision Making.14,93-113.

Chow, J. Y. J.,Regan, A. C.(2011).Network-based real option models.Transportation Research Part B: Methodological.45,682-695.