Journal of the Korean Operations Research and Management Science Society (한국경영과학회지)

The Korean Operations Research and Management Science Society (한국경영과학회)
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A Patent Valuation Method Using Game Theoretic Real Option Approach

실물옵션 게임이론을 이용한 특허가치 평가 방법

  • Kim, Jinyong (Department of Industrial Management Engineering, Graduate School of Korea University) ;
  • Kim, Jaehee (Division of Business Administration, Chonbuk National University) ;
  • Kim, Sheung-Kown (School of Industrial Management Engineering, Korea University)
  • 김진용 (고려대학교 대학원 산업경영공학과) ;
  • 김재희 (전북대학교 경영학부) ;
  • 김승권 (고려대학교 산업경영공학부)
  • Received : 2014.11.11
  • Accepted : 2015.03.29
  • Published : 2015.05.31
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Abstract

The valuation of patents is very important, since technology competitiveness is crucial for firms to maintain global competitiveness. But, the patent valuation is difficult and challenging because of the uncertainty affecting their returns. Hence, we propose a patent valuation method by incorporating game theory into the real option model, which can not only potentially recognizes the effect of uncertainty on patent value, but also consider investment decision in a competitive market, as a game between firms. With the model, we can consider dynamic strategy involving an option of patent leveraging strategies enabling the firm to switch among compete, cooperate, or wait modes under different demand or competitive advantage condition.

Keywords

References

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