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Controlling Risk in Capital Budgeting: A Practical Use of Utility Theory for Measurement and Control of Petroleum Exploration Risk
10 references·5 citing·30 second hop
Controlling Risk in Capital Budgeting: A Practical Use of Utility Theory for Measurement and Control of Petroleum Exploration Risk (1979)Controlling Risk in Capital Budgeting: A …Risk Aversion in the Small and in the Large (1976)Risk Aversion in the Small an…Petroleum evaluations and economic decisions (1975)Petroleum evaluations and eco…Decision analysis for petroleum exploration (1975)Decision analysis for petrole…Simplifying the Choice between Uncertain Prospects Where Preference is Nonlinear (1974)Simplifying the Choice betwee…Decision Analysis: Introductory Lectures on Choices Under Uncertainty. (1969)Decision Analysis: Introducto…Decision Analysis: Introductory Lectures on Choices Under Uncertainty. (1969)Decision Analysis: Introducto…Optimal financing decisions (1965)Optimal financing decisionsRisk Aversion in the Small and in the Large (1964)Risk Aversion in the Small an…Decisions under Uncertainty: Drilling Decisions by Oil and Gas Operators. By C. Jackson GraysonJr. Boston: Harvard Business School, Division of Research. 1960. Pp. xiv, 402. $6.00. (1962)Decisions under Uncertainty: …Decisions Under Uncertainty: Drilling Decisions by Oil and Gas Operators. (1961)Decisions Under Uncertainty: …Assessment of uncertain returns from investment in short rotation coppice using risk adjusted discount rates (2016)Assessment of uncertain retur…An improved portfolio optimization model for oil and gas investment selection (2014)An improved portfolio optimiz…Managing Technological and Financial Uncertainty: A Decision Science Approach for Strategic Drilling Decisions (1999)Managing Technological and Fi…Integrating Business Strategy and Capital Allocation: an Application of Multi-Objective Decision Making (1995)Integrating Business Strategy…Risk analysis in capital budgeting: Barriers and benefits (1991)Risk analysis in capital budg…Analysis of decisions under uncertainty (1969)Rules for Ordering Uncertain Prospects (1969)Safety-First, Stochastic Dominance, and Optimal Portfolio Choice (1978)Expected Utility, Penalty Functions, and Duality in Stochastic Nonlinear Programming (1986)Should More Risk-Averse Agents Exert More Effort? (1999)Evidence on the Importance of Financial Structure (1972)The Capital Expenditure Decision-Making Process of Large Corporations (1975)ESTIMATION AND USES OF THE TERM STRUCTURE OF INTEREST RATES (1976)The Optimal Production of an Exhaustible Resource When Price is Exogenous and Stochastic (1982)Oil-well valuation and abandonment with price and extraction rate uncertain (1990)The Application of Probabilistic and Qualitative Methods to Asset Management Decision Making (2000)A Process for Evaluating Exploration Prospects (1997)Valuing Oil Properties: Integrating Option Pricing and Decision Analysis Approaches (1998)Risk analysis applied to petroleum exploration and production: an overview (2004)The Economic Theory of Agency: The Principal's Problem. (1973)The Framing of Decisions and the Psychology of Choice (1981)Prospect theory: An analysis of decision under risk (1988)Competitive Bidding: A Comprehensive Bibliography (1971)The Sign and Size of Option Value (1984)Financial Intermediation and Delegated Monitoring (1984)Well-being : the foundations of hedonic psychology (1999)Coping with Uncertainty: A Naturalistic Decision-Making Analysis (1997)The antecedents and consequents of user perceptions in information technology adoption (1998)The irrelevance of inference: a decision-making approach to the stochastic evaluation of health care technologies (1999)The Development of a Corporate Risk Policy for Capital Investment Decisions (1968)An Invitation to Portfolio Decision Analysis (2011)Portfolio optimization in an upside potential and downside risk framework (2013)On the measurement of inequality (1970)THE VALUATION OF RISK ASSETS AND THE SELECTION OF RISKY INVESTMENTS IN STOCK PORTFOLIOS AND CAPITAL BUDGETS**This paper is another in a series of interrelated theoretical and statistical studies of corporate financial and investment policies being made under grants from the Rockefeller Foundation, and more recently the Ford Foundation, to the Harvard Business School. The generous support for this work is most gratefully acknowledged. The author is also much indebted to his colleagues Professors Bishop, Christenson, Kahr, Raiffa, and (especially) Schlaifer, for extensive discussion and commentary on an earlier draft of this paper; but responsibility for any errors or imperfections remains strictly his own.[Professor Sharpe's paper, “Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk” (Journal of Finance, September 1964) appeared after this paper was in final form and on its way to the printers. My first section, which parallels the first half of his paper (with corresponding conclusions), sets the algebraic framework for sections II, III and VI, (which have no counterpart in his paper) and for section IV on the equilibrium prices of risk assets, concerning which our results differ significantly for reasons which will be explored elsewhere. Sharpe does not take up the capital budgeting problem developed in section V below.] (1975)The arbitrage theory of capital asset pricing (1976)
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References

  • 1964Risk Aversion in the Small and in the Large4,964 cited
  • 1976Risk Aversion in the Small and in the Large4,655 cited
  • 1969Decision Analysis: Introductory Lectures on Choices Under Uncertainty.1,928 cited
  • 1969Decision Analysis: Introductory Lectures on Choices Under Uncertainty.960 cited
  • 1975Decision analysis for petroleum exploration345 cited
  • 1965Optimal financing decisions185 cited
  • 1974Simplifying the Choice between Uncertain Prospects Where Preference is Nonlinear171 cited
  • 1962Decisions under Uncertainty: Drilling Decisions by Oil and Gas Operators. By C. Jackson GraysonJr. Boston: Harvard Business School, Division of Research. 1960. Pp. xiv, 402. $6.00.137 cited
  • 1961Decisions Under Uncertainty: Drilling Decisions by Oil and Gas Operators.113 cited
  • 1975Petroleum evaluations and economic decisions83 cited

Cited by

  • 1995Integrating Business Strategy and Capital Allocation: an Application of Multi-Objective Decision Making25 cited
  • 2016Assessment of uncertain returns from investment in short rotation coppice using risk adjusted discount rates23 cited
  • 1999Managing Technological and Financial Uncertainty: A Decision Science Approach for Strategic Drilling Decisions23 cited
  • 2014An improved portfolio optimization model for oil and gas investment selection

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22 cited
  • 1991Risk analysis in capital budgeting: Barriers and benefits21 cited