Justifying Electronic Banking Network Expansion Using Real Option Pricing: An Empirical Illustration

• Main Authors: Benaroch, Michel, KAUFFMAN, Robert J.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2000
• Subjects: Black-Scholes model; investment decision making under uncertainty; electronic banking networks; POS debit systems; project investments; IT investment evaluation; option pricing models; real options; Computer Sciences; Finance and Financial Management; Management Information Systems
• Online Access: https://ink.library.smu.edu.sg/sis_research/2149; https://ink.library.smu.edu.sg/context/sis_research/article/3149/viewcontent/benaroch.pdf
• Institution: Singapore Management University

The application of real options analysis to information technology investment evaluation problems recently has been proposed in the IS literature (Chalasani et al. 1997; Dos Santos 1991; Kambil et al. 1993; Kumar 1996; Taudes 1998). The research reported on in this paper illustrates the value of app...