Issue: 2016/Vol.26/No.2, Pages 127-145
VALUING MANAGERIAL FLEXIBILITY: AN APPLICATION OF REAL-OPTION THEORY TO STEEL INDUSTRY INVESTMENTS
Joaquín Sánchez-Soriano
, Natividad Llorca, Encarnación Algaba
Cite as: J. Sánchez-Soriano, N. Llorca, E. Algaba. Valuing managerial flexibility: An application of real-option theory to steel industry investments. Operations Research and Decisions 2016: 26(2), 127-145. DOI 10.5277/ord160208
Abstract
(Discrete) bankruptcy problems associated with apportionment problems have been defined. The authors studied which allocations for apportionment problems have been obtained when (discrete) bankruptcy rules were applied to the associated bankruptcy problems. They have shown that the (discrete) constrained equal losses rule coincides with the greatest remainder method for apportionment problems. Furthermore, new properties related to governability have been proposed for apportionment methods. Finally, several apportionment methods satisfying governability properties have been applied to the case of the Spanish Elections in 2015
Keywords: apportionment rules, bankruptcy rules, standard of comparisons, proportional electoral systems, governability
Received: 24 April 2016 Accepted: 8 July 2016