Journal of International Business and Economy

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A Fuzzy Growth Options Approach under Competition Threat
Georgios N. Angelou and Anastasio A. Economides
Volume 8, Number 1, Spring 2007, pp. 23~42

Information Communication Technology (ICT) projects may contain ¢®¡Æwait and see¢®¡¾ components, which give ICT managers the option to defer decisions until some uncertainty is resolved. In this paper, we treat these ICT opportunities as Real Options (RO) and assume that there is competition threat that can influence negatively or even worst eliminate their values. We consider exogenous competition modeling assuming that competitors are entering randomly into the market and cause a degradation of the available
to the firm of interest overall market value. We introduce fuzzy logic and combine it with ROs under competition threat. The theory developed implicitly contains not only the deferral flexibility of projects but also the possibility of considering vague information, which needs to be taken into account when (long-time range) financial decisions are made. Our proposed model is applied to a real life broadband technology business activity associated with ¢®¡ÆEgnatia Odos S.A.¢®¡¾ strategic decision to deploy optical fiber backbone network along the national motorway ¢®¡ÆEgnatia Odos.¢®¡¾ The results of our model prove that FROs analysis may increase the overall value of the ICT business activity despite competition threat.

Key Words: real options, fuzzy logic, information communication technology, competition cost, net present value, investment analysis

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Economic Spread and Market Value: The Case of Listed Companies in Greece
Panayiotis G. Artikis
Volume 8, Number 1, Spring 2007, pp. 43~58
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The Evolution and the Prospects of Contemporary Financial Instruments in Greece: The Case of SWAPS
Olympia Agorasti, George N. Blanas and Pavlos Golemis
Volume 8, Number 1, Spring 2007, pp. 7~22