{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,2,25]],"date-time":"2026-02-25T19:41:31Z","timestamp":1772048491401,"version":"3.50.1"},"reference-count":40,"publisher":"Institute for Operations Research and the Management Sciences (INFORMS)","issue":"11","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["Management Science"],"published-print":{"date-parts":[[2009,11]]},"abstract":"<jats:p> We provide a general valuation approach for capital budgeting decisions involving the modularization in the design of a system. Within the framework developed by Baldwin and Clark (Baldwin, C. Y., K. B. Clark. 2000. Design Rules: The Power of Modularity. MIT Press, Cambridge, MA), we implement a valuation approach using a numerical procedure based on the least-squares Monte Carlo method proposed by Longstaff and Schwartz (Longstaff, F. A., E. S. Schwartz. 2001. Valuing American options by simulation: A simple least-squares approach. Rev. Financial Stud. 14(1) 113\u2013147). The approach is accurate, general, and flexible. <\/jats:p>","DOI":"10.1287\/mnsc.1090.1070","type":"journal-article","created":{"date-parts":[[2009,9,12]],"date-time":"2009-09-12T01:46:00Z","timestamp":1252719960000},"page":"1877-1896","source":"Crossref","is-referenced-by-count":65,"title":["Valuing Modularity as a Real Option"],"prefix":"10.1287","volume":"55","author":[{"given":"Andrea","family":"Gamba","sequence":"first","affiliation":[{"name":"School of Business, George Washington University, Washington, DC 20052; and Department of Economics, University of Verona, 37129 Verona, Italy"}]},{"given":"Nicola","family":"Fusari","sequence":"additional","affiliation":[{"name":"University of Lugano, 6900 Lugano, Switzerland; and Swiss Finance Institute, 1211 Geneva, Switzerland"}]}],"member":"109","reference":[{"key":"B1","doi-asserted-by":"publisher","DOI":"10.7551\/mitpress\/2366.001.0001"},{"key":"B2","doi-asserted-by":"publisher","DOI":"10.1007\/3-540-32834-3_9"},{"key":"B3","author":"Bonaccorsi A.","year":"1998","journal-title":"Internat. J. Appl. Software Technologies"},{"key":"B4","doi-asserted-by":"publisher","DOI":"10.1093\/rfs\/2.2.241"},{"key":"B5","doi-asserted-by":"publisher","DOI":"10.2307\/2331262"},{"key":"B6","doi-asserted-by":"publisher","DOI":"10.1093\/rfs\/9.4.1211"},{"key":"B7","doi-asserted-by":"publisher","DOI":"10.1145\/1321631.1321704"},{"key":"B8","doi-asserted-by":"publisher","DOI":"10.1111\/j.1540-6261.1988.tb03967.x"},{"key":"B9","volume-title":"Financial Theory and Corporate Policy","author":"Copeland T. E.","year":"2005","edition":"4"},{"key":"B10","doi-asserted-by":"publisher","DOI":"10.1016\/0304-405X(79)90015-1"},{"key":"B11","doi-asserted-by":"publisher","DOI":"10.1515\/9781400830176"},{"key":"B12","doi-asserted-by":"publisher","DOI":"10.1080\/09544829108901686"},{"key":"B13","doi-asserted-by":"publisher","DOI":"10.1007\/BF01588087"},{"issue":"16","key":"B14","author":"Fried I.","year":"2003","journal-title":"CNET News"},{"key":"B15","doi-asserted-by":"crossref","unstructured":"Gamba A. Real option valuation: A Monte Carlo approach.  (2002) . Working paper, School of Management, University of Calgary, Calgary, AB, Canada","DOI":"10.2139\/ssrn.302613"},{"key":"B16","doi-asserted-by":"publisher","DOI":"10.1016\/j.jedc.2008.10.001"},{"key":"B17","doi-asserted-by":"publisher","DOI":"10.1080\/13504860701532237"},{"key":"B18","doi-asserted-by":"publisher","DOI":"10.1111\/j.1468-0300.2008.00193.x"},{"key":"B19","doi-asserted-by":"publisher","DOI":"10.2307\/2330330"},{"key":"B20","doi-asserted-by":"publisher","DOI":"10.1016\/0304-405X(79)90022-9"},{"key":"B21","doi-asserted-by":"publisher","DOI":"10.1111\/j.1540-6261.1984.tb04921.x"},{"key":"B22","doi-asserted-by":"publisher","DOI":"10.1007\/978-0-387-21617-1"},{"key":"B23","doi-asserted-by":"publisher","DOI":"10.1016\/j.eneco.2005.04.003"},{"key":"B24","volume-title":"Numerical Methods in Economics","author":"Judd K. L.","year":"1998"},{"key":"B25","doi-asserted-by":"publisher","DOI":"10.2307\/3665943"},{"key":"B26","volume-title":"Numerical Solution of Stochastic Differential Equations","author":"Kloeden P. E.","year":"1999","edition":"3"},{"key":"B27","doi-asserted-by":"publisher","DOI":"10.1287\/orsc.12.6.744.10082"},{"key":"B28","doi-asserted-by":"publisher","DOI":"10.1093\/rfs\/14.1.113"},{"key":"B29","doi-asserted-by":"publisher","DOI":"10.1016\/S0377-2217(01)00075-3"},{"key":"B30","doi-asserted-by":"publisher","DOI":"10.1023\/A:1027340210935"},{"key":"B31","doi-asserted-by":"publisher","DOI":"10.1016\/j.gfj.2006.10.002"},{"issue":"3","key":"B32","first-page":"79","volume":"4","author":"Rudholm N.","year":"2007","journal-title":"ICFAI J. Mergers Acquisitions"},{"issue":"2","key":"B33","first-page":"41","volume":"6","author":"Samuelson P. A.","year":"1965","journal-title":"Indust. Management Rev."},{"key":"B34","doi-asserted-by":"publisher","DOI":"10.2307\/3003046"},{"key":"B35","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.1030.0155"},{"key":"B36","doi-asserted-by":"publisher","DOI":"10.1109\/TEM.1981.6448589"},{"key":"B37","volume-title":"System Analysis and Management: Structure, Strategy and Design","author":"Steward D. V.","year":"1981"},{"key":"B38","doi-asserted-by":"publisher","DOI":"10.1145\/503222.503224"},{"key":"B39","doi-asserted-by":"publisher","DOI":"10.2307\/2331148"},{"key":"B40","volume-title":"Real Options: Managerial Flexibility and Strategy in Resource Allocation","author":"Trigeorgis L.","year":"1996"}],"container-title":["Management Science"],"original-title":[],"language":"en","link":[{"URL":"https:\/\/pubsonline.informs.org\/doi\/pdf\/10.1287\/mnsc.1090.1070","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2023,4,2]],"date-time":"2023-04-02T12:54:56Z","timestamp":1680440096000},"score":1,"resource":{"primary":{"URL":"https:\/\/pubsonline.informs.org\/doi\/10.1287\/mnsc.1090.1070"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2009,11]]},"references-count":40,"journal-issue":{"issue":"11","published-print":{"date-parts":[[2009,11]]}},"alternative-id":["10.1287\/mnsc.1090.1070"],"URL":"https:\/\/doi.org\/10.1287\/mnsc.1090.1070","relation":{},"ISSN":["0025-1909","1526-5501"],"issn-type":[{"value":"0025-1909","type":"print"},{"value":"1526-5501","type":"electronic"}],"subject":[],"published":{"date-parts":[[2009,11]]}}}