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Option chain and change management : a structural equation application

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  • Thierry Burger-Helmchen

Abstract

The aim of this work is to establish empirically with a structural equation model (SEM) the existence of links between the options perceived by the members of an industry, the expectation of future rents produced by the exercise of these options and firm or industry specific factors. The theoretical part of this work is based on the notion of option chain developed by Bowman and Hurry (1993). The empirical part is on the video-game industry. A questionnaire based dataset on 211 video-game creators allows us to represent the concepts of potential and real option from a strategic point of view. The study shows that the relations between perceived opportunities, capacities building and rent expectations are shared by the members of this industry and can be expressed as options.

Suggested Citation

  • Thierry Burger-Helmchen, 2006. "Option chain and change management : a structural equation application," Working Papers of BETA 2006-28, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    • Handle: RePEc:ulp:sbbeta:2006-28
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    Cited by:

    1. Estelle Dhont-Peltrault & Etienne Pfister, 2007. "R&D cooperation versus R&D subcontracting: empirical evidence from French survey data," Working Papers of BETA 2007-17, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    2. Gisèle Umbhauer, 2007. "De l’amiante au chrysotile, un glissement stratégique dans la désinformation," Working Papers of BETA 2007-15, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    3. Li Qin & Eleftherios Spyromitros & Moïse Sidiropoulos, 2007. "Monetary Policy with Uncertain Central Bank Preferences for Robustness," Working Papers of BETA 2007-23, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    4. Pätäri, Satu & Kyläheiko, Kalevi & Sandström, Jaana, 2011. "Opening up new strategic options in the pulp and paper industry: Case biorefineries," Forest Policy and Economics, Elsevier, vol. 13(6), pages 456-464, July.
    5. Sofia Pessoa e Costa & Stéphane Robin, 2007. "The Impact Of Training Programmes On Wages In France: An Evaluation Of The “Qualifying Contract” Using Propensity Scores," Working Papers of BETA 2007-18, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    6. Antonio Di Bari & Domenico Santoro & Maria Antonia Tarrazon-Rodon & Giovanni Villani, 2024. "The impact of polarity score on real option valuation for multistage projects," Quality & Quantity: International Journal of Methodology, Springer, vol. 58(1), pages 57-76, February.
    7. Pasquale Lucio Scandizzo & Odin K. Knudsen, 2024. "The New Normalcy and the Pandemic Threat: A Real Option Approach," JRFM, MDPI, vol. 17(2), pages 1-27, February.

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    Keywords

    Real options; Innovation and change management; structural equation analysis; video-game industry.;
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