Real options: What telecommunications can learn from electric power

  • Todd Strauss
Part of the Topics in Regulatory Economics and Policy book series (TREP, volume 34)


An example of an option associated with operating flexibility in electric power production and a real options approach to valuing the option are presented. This approach is contrasted with the standard discounted cash flow approach and a pure financial option valuation approach. Some connections between electric power and telecommunications are drawn, and lessons for the telecommunications industry are highlighted.


Power Plant Real Option Call Option Operating Flexibility Discount Cash Flow 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Kluwer Academic Publishers 1999

Authors and Affiliations

  • Todd Strauss
    • 1
  1. 1.PHB Hagler Bailly, Inc.USA

Personalised recommendations