analyticalQ Contact Flexibility Decision Analysis

Table of Contents

Preface
1 Introduction
2 Definition of Flexibility
3 Valuing Flexibility
4 Applications of Flexibility
5 Decision Analysis
6 Option Pricing
7 Hybrid Valuation Methods
8 Life Decisions
9 Consumer Decisions
10 Energy Markets
11 Conclusions and Guidelines
Web Resources
  References

 

Book based on my PhD and subsequent work experience.

Decision Making for Flexibility

by Anne Ku

 

Chapter 1
Introduction & Motivation

  • why you would want to read this
  • why I want to write this
  • flexibility comes of age
  • different guises of flexibility

Flexibility is a means to cope with uncertainty but at a price. In this book, we show different ways to measure the value of flexibility.

Questions:

  • What is flexibility?
  • Under which circumstances is flexibility useful?
  • How do we value or measure flexibility?
  • What are the drawbacks in using flexibility as a criterion or objective?
  • How do decision analysis and option pricing differ in their treatment of flexibility?

 

Copyright Anne Ku 2000