Real Option Framework to Value Network Architecture and Network Neutrality

Mark Gaynor
Boston University

This talk discusses a real options framework for evaluating architectural choices and the economic value of these alternative choices of networks, protocols, and services. Using proven financial techniques of real options, our model explores the value of network architecture. In particular this model is applied to the following two choices network designers and managers face:
1) The value of flexibility with distributed architecture compared to the benefits of centralized control;
2) The value of network neutrality.

Presentation (PowerPoint File)

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