Real options for naval ship design and acquisition : a method for valuing flexibility under uncertainty

The United States Navy is facing a need for a novel surface combatant capability. This new system of ships must be deigned to meet the uncertainty associated with constantly changing required mission capabilities, threats, and technological advances. Flexibility in design and management will enable these systems to maximize their performance under changing conditions. Real options involve the 'right but not the obligation' to take a course of action. Real options embody the flexibility that allows projects to be continually reshaped, as uncertainty becomes resolved. This thesis seeks to identify and analyze the real options available for the design and acquisition of naval ships. This thesis also seeks to determine the value of these options and determine the best types and amount of flexibility to design into naval systems in order to maximize the value of the system over time under uncertain conditions.

Department dc:contributor.department

Massachusetts Institute of Technology. Dept. of Ocean Engineering.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2003

Author dc:creator

• Gregor, Jeffrey Allen

Advisor dc:contributor.advisor

• Clifford A. Whitcomb.

• Ocean Engineering.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/33422

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/33422