Economics of Decisions

Babak Jafarizadeh

doi:10.1007/978-3-030-96137-4_3

Economics of Decisions

Babak Jafarizadeh^*

^*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceeding › Chapter

Abstract

All models are approximations. In this chapter we discuss key approximations for economic decision models. Finance theory shows the relationship between uncertainty and value. It tells us what we should expect in return for taking economically risky opportunities. This understanding is key to a consistent comparison of our courses of action. We will discuss that project decisions should be for the benefit of their real owners, the investors.

Original language	English
Title of host publication	SpringerBriefs in Petroleum Geoscience and Engineering
Publisher	Springer
Pages	41-70
Number of pages	30
ISBN (Electronic)	9783030961374
ISBN (Print)	9783030961367
DOIs	https://doi.org/10.1007/978-3-030-96137-4_3
Publication status	Published - 2022

Publication series

Name	SpringerBriefs in Petroleum Geoscience and Engineering
ISSN (Print)	2509-3126
ISSN (Electronic)	2509-3134

ASJC Scopus subject areas

Geotechnical Engineering and Engineering Geology
Fuel Technology
Engineering (miscellaneous)

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10.1007/978-3-030-96137-4_3

Cite this

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abstract = "All models are approximations. In this chapter we discuss key approximations for economic decision models. Finance theory shows the relationship between uncertainty and value. It tells us what we should expect in return for taking economically risky opportunities. This understanding is key to a consistent comparison of our courses of action. We will discuss that project decisions should be for the benefit of their real owners, the investors.",

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M3 - Chapter

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Economics of Decisions

Abstract

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ASJC Scopus subject areas

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