Arrow-Fisher-Hanemann-Henry and Dixit-Pindyck option values under strategic interactions

We extend the Arrow-Fisher-Hanemann-Henry (AFHH) and Dixit-Pindyck (DP) option values to game situations. By reinterpreting the AFHH option value as a change in the surplus from conservation because of the prospect of future information, we deal with the conceptual difficulty associated with the AFHH...

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Main Authors: FUJII, Tomoki, ISHIKAWA, Ryuichiro
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2011
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Online Access:https://ink.library.smu.edu.sg/soe_research/1314
https://ink.library.smu.edu.sg/context/soe_research/article/2313/viewcontent/afhh_vs_dp_42_.pdf
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spelling sg-smu-ink.soe_research-23132019-04-20T13:52:23Z Arrow-Fisher-Hanemann-Henry and Dixit-Pindyck option values under strategic interactions FUJII, Tomoki ISHIKAWA, Ryuichiro We extend the Arrow-Fisher-Hanemann-Henry (AFHH) and Dixit-Pindyck (DP) option values to game situations. By reinterpreting the AFHH option value as a change in the surplus from conservation because of the prospect of future information, we deal with the conceptual difficulty associated with the AFHH option value in the presence of strategic interactions. We then introduce the DP option value into a game situation. We show that the equivalence between the expected value of information and the DP option value in the standard model does not hold under strategic interactions. 2011-11-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/soe_research/1314 https://ink.library.smu.edu.sg/context/soe_research/article/2313/viewcontent/afhh_vs_dp_42_.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Economics eng Institutional Knowledge at Singapore Management University Irreversibility Quasi-option values Biodiversity Uncertainty Value of Information Behavioral Economics Strategic Management Policy
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Irreversibility
Quasi-option values
Biodiversity
Uncertainty
Value of Information
Behavioral Economics
Strategic Management Policy
spellingShingle Irreversibility
Quasi-option values
Biodiversity
Uncertainty
Value of Information
Behavioral Economics
Strategic Management Policy
FUJII, Tomoki
ISHIKAWA, Ryuichiro
Arrow-Fisher-Hanemann-Henry and Dixit-Pindyck option values under strategic interactions
description We extend the Arrow-Fisher-Hanemann-Henry (AFHH) and Dixit-Pindyck (DP) option values to game situations. By reinterpreting the AFHH option value as a change in the surplus from conservation because of the prospect of future information, we deal with the conceptual difficulty associated with the AFHH option value in the presence of strategic interactions. We then introduce the DP option value into a game situation. We show that the equivalence between the expected value of information and the DP option value in the standard model does not hold under strategic interactions.
format text
author FUJII, Tomoki
ISHIKAWA, Ryuichiro
author_facet FUJII, Tomoki
ISHIKAWA, Ryuichiro
author_sort FUJII, Tomoki
title Arrow-Fisher-Hanemann-Henry and Dixit-Pindyck option values under strategic interactions
title_short Arrow-Fisher-Hanemann-Henry and Dixit-Pindyck option values under strategic interactions
title_full Arrow-Fisher-Hanemann-Henry and Dixit-Pindyck option values under strategic interactions
title_fullStr Arrow-Fisher-Hanemann-Henry and Dixit-Pindyck option values under strategic interactions
title_full_unstemmed Arrow-Fisher-Hanemann-Henry and Dixit-Pindyck option values under strategic interactions
title_sort arrow-fisher-hanemann-henry and dixit-pindyck option values under strategic interactions
publisher Institutional Knowledge at Singapore Management University
publishDate 2011
url https://ink.library.smu.edu.sg/soe_research/1314
https://ink.library.smu.edu.sg/context/soe_research/article/2313/viewcontent/afhh_vs_dp_42_.pdf
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