Print Email Facebook Twitter Added value of different approaches of real options in transportation infrastructure projects decision-making Title Added value of different approaches of real options in transportation infrastructure projects decision-making Author Gijsen, F. Contributor Annema, J.A. (mentor) Roosenboom-Kwee, Z. (mentor) Van Wee, G.P. (mentor) Faculty Technology, Policy and Management Department Engineering, Systems and Services Programme Systems Engineering, Policy Analysis and Management Date 2016-03-10 Abstract The importance of including flexibility into transportation infrastructure projects decision-making is widely recognised. Real-option analysis (ROA) is a technique for valuing flexibility to adapt to an uncertain future which can be included in the traditional Cost-Benefit Analysis. However, current practice of real options in transportation infrastructure decision-making is limited and therefore this research aims to investigate to what extent ROA can be a valuable addition. Based on the application of the Simplified Decision Tree Method and Binomial Option Pricing Method in two different case studies and on interviews conducted, it can be said that ROA is valuable as it can enrich the decision-making information for certain Dutch transportation infrastructure projects. Essentially, ROA leads to optimal decision-making, additional strategic insights and it supports adaptive decision-making. However, there are also practical limitations for the application of ROA in organizations such as the current standardized decision-making process, the additional time and effort and complexity of the application. Therefore, a trade-off between the added value and the additional effort has to be made. Further research into the methods and the effects of assumptions, applications on different types of infrastructure projects and dealing with projects influenced by many uncertainties is recommended. Subject real optionstransportation infrastructure projectsdecision-makingflexibilitycase-studyCost-Benefit Analysis To reference this document use: http://resolver.tudelft.nl/uuid:bb98984b-e107-4874-b306-5bd89d33a9a5 Part of collection Student theses Document type master thesis Rights (c) 2016 Gijsen, F. Files PDF Msc_Thesis_Fleur_Gijsen.pdf 3.1 MB PDF Scientific_Article_Fleur_Gijsen.pdf 684.25 KB Close viewer /islandora/object/uuid:bb98984b-e107-4874-b306-5bd89d33a9a5/datastream/OBJ1/view