OPTION VALUE

Graeme Olsen

Australian Journal of Agricultural Economics, 1975, vol. 19, issue 3, 13

Abstract: 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.

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Date: 1975
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:ajaeau:22339

DOI: 10.22004/ag.econ.22339

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