OPTION VALUE

The option value of a good is the amount which potential consumers of the good are prepared to pay now, to ensure that the good remains available for future purchase. Option values should be considered when making resource allocation decisions, so that efficient decisions are made. The theoretical basis of option value is described and the problems involved in the recognition, use and measurement of option value are discussed.


Issue Date:
1975-12
Publication Type:
Journal Article
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/22339
PURL Identifier:
http://purl.umn.edu/22339
Published in:
Australian Journal of Agricultural Economics, 19, 3
Page range:
197-209
Total Pages:
13




 Record created 2017-04-01, last modified 2020-10-28

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)