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C: FINANCEER6UP
Contracts are usually analyzed in the light of the reduction of transaction costs that they may ensure. But this disregards the advantages of strategic flexibility in business relations. In this paper we consider a model of provider-client relation and see how flexibility in the contract (seen as a combination of a put and a call option) ensures a higher payoff to the involved parties.
Gaston Milanesi. 2014. \u201cA Real Options Approach to Contractual Agreements and Value Flexibility\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 14 (GJMBR Volume 14 Issue C2): .
Crossref Journal DOI 10.17406/GJMBR
Print ISSN 0975-5853
e-ISSN 2249-4588
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Total Score: 102
Country: Argentina
Subject: Global Journal of Management and Business Research - C: Finance
Authors: Gaston Milanesi, Fernando Tohme (PhD/Dr. count: 0)
View Count (all-time): 121
Total Views (Real + Logic): 4521
Total Downloads (simulated): 2192
Publish Date: 2014 06, Wed
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Contracts are usually analyzed in the light of the reduction of transaction costs that they may ensure. But this disregards the advantages of strategic flexibility in business relations. In this paper we consider a model of provider-client relation and see how flexibility in the contract (seen as a combination of a put and a call option) ensures a higher payoff to the involved parties.
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