The New Investment Theory of Real Options and Its Implications For The Cost Models In Telecommunications
 
October 2, 1998
Columbia University.
Hosted by the Columbia Institute for Tele-Information, the University of Colorado, Hagler Bailly, and Putnam, Hayes, & Bartlett.

RealAudio Broadcast Summary Program

About the Conference
This workshop will analyze the forward-looking long run costs and related costs TELRIC method proposed by the Federal Communications Commission, the engineering process models, and "traditional" investment evaluation criteria before turning to the new investment theory (real options) approach.

The current cost models have not incorporated the new theory into their structure, and according to some, they may mis-estimate costs.

Real Audio
RealAudio Transcripts are available for the following panels:

9:00am Opening Remarks:
Eli Noam, Columbia University

Overview:
James Alleman, University of Colorado

Real Options: A Primer
Lenos Trigeorgis, University of Cyprus

10:00am TELRIC: An Overview
Chair:
Bruce Egan, Columbia University

TELRIC: A Critique
Larry Darby, Darby & Associates

TELRIC: An Insider's View
Mark Kennet, FCC

Discussant:
Tim Tardiff, NERA

11:00am Cost Model Principles
Chair:
William Zarakas, Hagler Bailly/Theodore Barry & Associates

Principles: A Review
William Sharkey, FCC

Comporting with Principles?
Mark Jamison, University of Florida

Discussant:
William Baumol, NYU

11:40 Cost Models: An Assessment
RealAudio
Chair:
William Lehr, Columbia University

Principles II:
Nicholas Economides, NYU

Cost Models: Comporting With Principles II?
Richard Emmerson, INDETEC

Discussant:
Michael D. Pelcovits, MCI

2:00pm Real Options Application to Cost Models I
Real Audio
Chair:
Lee Bauman, Putnam, Hayes & Bartlett

Regulatory Impact on Pricing and Modeling
James Alleman, University of Colorado

Dynamic Considerations
Jerry Hausman, MIT

Discussant:
Lenos Trigeorgis, University of Cyprus

3:00pm Real Options Application to Cost Models II
RealAudio
Chair:
William Lehr, Columbia/MIT

Sunk Cost/Irreversibility
Sanjai Bhagat, University of Colorado

Real Options Application in the Electric Industry
Todd Straus, Hagler Bailly

Discussant:
Richard Clarke, AT&T

4:00pm Round Table Discussion
RealAudio
Moderator:
Eli Noam, Columbia University

Panelists:

  • Jerry Hausman, MIT
  • Barbara Cherry, Northwestern University/Ameritech
  • Nicholas Economides, NYU
  • Todd Strauss, Hagler Bailly

4:30pm Summary
RealAudio

Implications of Real Options in Modelling
Lee Bauman, Putnam, Hayes & Bartlett
William Baumol, NYU

Organized by

James Alleman, University of Colorado
   

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