Real options and game theoretical approaches to real estate development projects: multiple equilibria and the implications of different tie-breaking rules

This paper contributes to a fast growing literature which introduces game theory in the analysis of real option investments in a competitive setting. Specifically, in this paper we focus on the issue of multiple equilibria and on the implications that different equilibrium selections may have for the pricing of real options and for subsequent strategic decisions. We present some theoretical results of the necessary conditions to have multiple equilibria and we show under which conditions different tie-breaking rules result in different economic decisions. We then present a numerical exercise using the in formation set obtained on a real estate development in South London. We find that risk aversion reduces option value and this reduction decreases marginally as negative externalities decrease.

EU enlargement and consequences for FDI-assisted industrial development

Many of the new member states as well as candidate and accession countries of the EU are confident that membership will result in substantially increased inward foreign direct investment (FDI) in manufacturing. This paper discusses the policy issues and challenges that cohesion and accession countries face, applying lessons that by now have become mainstream in the parallel discussion of FDI-assisted development in the developing economies. We argue that globalisation has attenuated the benefits that accrue from EU membership for latecomers, and they must now compete for FDI not just with other European countries but also with non- EU emerging economies. We posit that they should not base their industrial development strategy on mere passive reliance of FDI flows without considering how to concatenate their industrial development and the nature of the MNE activities they attract.

Knowledge sharing by organisations in sustainable development projects

There are an increasing number of organisations seeing the benefits of implementing sustainable development practices within their processes and product design. However, there are a number of barriers that are preventing organisations from taking up this challenge. Some of these barriers could be reduced through the application of better external knowledge sharing. This paper explores the potential for sharing knowledge about sustainable development practices in academic and industry journals. Using content analysis, the types of projects that are discussed and the level of detail provided in the reporting of sustainable development initiatives by organisations are examined to identify what is being communicated and more importantly to identify what is not being shared. The results show that there is a lack of detail in reporting with a focus on reporting only certain types of sustainable development projects that may prevent knowledge sharing from occurring.

Proposal of a tiered conceptual framework for sustainable design and planning of large-scale development projects in the metropolitan context

The overwhelming threat posed by climate change means that increasingly, emphasis is being placed on the need to integrate sustainability considerations into all areas of policy making, planning and development. Actors in the built environment are progressively considering environmental and social issues alongside functional and economic aspects of development projects. However, to date in Australia and internationally, there have been few practical examples of integrated applications of sustainability principles in the built environment across design, planning, construction, operation and de-construction phases. Notable initiatives have tended to be narrow in scope, focusing on either mitigation or adaptation strategies. Integrated considerations of impacts from component and building scales to city and regional scales and across physical and socio-economic dimensions are urgently needed, particularly for long-life major infrastructure projects. This paper proposes a conceptual framework based on the principal that early intervention is the most cost-effective and efficient means of implementing effective strategies for mitigation and adaptation. A Strategic Environmental Assessment (SEA) approach is forwarded as an umbrella analytical framework, assembled from analytical methods which are strategically ‘tiered’ to inform different stages of the planning and decision-making process. Techniques such as Ecological footprint, Life cycle costing and Risk analysis may be applied to integrate sustainable design, construction and planning considerations which address both mitigation and adaptation dimensions, results of each analysis ultimately being collated into the overall SEA. This integrated conceptual framework for sustainable, resilient and cost-effective infrastructure development will in practice be applied to assess selected case-studies of major development projects in Australia, focusing on the area of stadium development. Practically applied and timed accordingly, the framework would allow assessments to be targeted towards appropriate decision making levels and enable better decision-making and more efficient resource allocation for major infrastructure development projects.

Information systems development projects as complex adaptive systems

This research considers information systems development (ISD) projects as complex adaptive systems. We investigate the question whether complex adaptive systems (CAS) theory is relevant as a theoretical foundation for understanding ISD, and if so, which kind of understanding can be achieved by utilizing the theory? We introduce key concepts of CAS theory such as interaction, emergence, interconnected autonomous agents, selforganization, co-evolution, poise at the edge of chaos, time pacing, and poise at the edge of time to analyse and understand ISD in practice. We demonstrate the strength of such a CAS approach through an empirical case study presentation and analysis. While our work contributes to a complexity theory of ISD, the case examination also provides practical advice derived from this perspective to successfully cope with complexity in ISD in an adaptive manner.

Psychosocial antecedents of communication, trust, and relationship effectiveness in new product development projects : a functional manager perspective

The basic differences between marketing managers and their technically trained counterpart managers [e.g., research and development (R&D), engineering, and manufacturing managers] in terms of work experience, training, and differing decision-making styles have often been suggested as a source of conflict, which acts as a barrier to effective working relationships and integration during new product development (NPD) work. In this paper, we empirically explore this issue by developing and testing a model of psychosocial differences (thought worlds and psychological distance) between the two groups of managers and their effect on communication, trust, and relationship effectiveness during NPD projects. We find that while thought world differences do still matter, it was from a marketing perspective that they had a stronger effect. These findings have implications for top management trying to manage the functional manager interface during NPD projects. We propose a semi-formalized approach to relationship building that may speed up the acquisition of social data that is often necessary to elevate working relationships to trusting ones and improve the efficiency of NPD work. Our model is tested using data from two samples, 184 technically trained managers and 145 marketing managers from Australian companies involved in NPD work.

Sustainable planning and design of large-scale metropolitan development projects

Actors in the built environment are increasingly considering environmental issues alongside functional and economic aspects of development projects. However, to date in Australia and internationally, there have been few practical examples of integrated applications of sustainability principles in the built environment across all lifecycle phases. In response to this gap, this paper proposes a conceptual framework based on the principal that early intervention is the most cost-effective and efficient means of implementing effective strategies for sustainability. A strategic environmental assessment (SEA) approach is forwarded as an umbrella analytical framework, assembled from analytical methods which are strategically 'tiered' to inform stages of the project decision-making process. Practically applied and timed accordingly, the framework can allow assessments to be targeted towards appropriate decision making levels and enable better decision-making and more efficient resource allocation for major infrastructure development projects.

Use of anthropogenic sea floor structures by Australian fur seals: potential positive ecological impacts of marine industrial development?

Human-induced changes to habitats can have deleterious effects on many species that occupy them. However, some species can adapt and even benefit from such modifications. Artificial reefs have long been used to provide habitat for invertebrate communities and promote local fish populations. With the increasing demand for energy resources within ocean systems, there has been an expansion of infrastructure in near-shore benthic environments which function as de facto artificial reefs. Little is known of their use by marine mammals. In this study, the influence of anthropogenic sea floor structures (pipelines, cable routes, wells and shipwrecks) on the foraging locations of 36 adult female Australian fur seals (Arctocephalus pusillus doriferus) was investigated. For 9 (25%) of the individuals, distance to anthropogenic sea floor structures was the most important factor in determining the location of intensive foraging activity. Whereas the influence of anthropogenic sea floor structures on foraging locations was not related to age and mass, it was positively related to flipper length/standard length (a factor which can affect manoeuvrability). A total of 26 (72%) individuals tracked with GPS were recorded spending time in the vicinity of structures (from <1% to >75% of the foraging trip duration) with pipelines and cable routes being the most frequented. No relationships were found between the amount of time spent frequenting anthropogenic structures and individual characteristics. More than a third (35%) of animals foraging near anthropogenic sea floor structures visited more than one type of structure. These results further highlight potentially beneficial ecological outcomes of marine industrial development.

Gender in international economic development projects: how is gender being institutionalized in the Inter-American Development Bank?

O Banco Interamericano de Desenvolvimento, o Banco Mundial, e outras organizações financiam iniciativas para acelerar o desenvolvimento da região da América Latina e Caribe. Antes do final da década de 80, vários projetos e políticas dessas instituições careciam de considerações ligadas à gênero e foram criticadas por essa falta (Flora, 1998). Em 1987, o BID publicou um documento sobre uma nova política operacional sobre mulheres e desenvolvimento e vem desde então buscando institucionalizar gênero e criar indicadores para medir os impactos relacionados à gênero em seus projetos. O objetivo dessa dissertação é explorar o tema de gênero no contexto do desenvolvimento internacional através de uma análise de como o Banco Interamericano de Desenvolvimento inclui gênero em suas operações. Após uma revisão literária sobre a importância de gênero e de bancos de desenvolvimento, essa dissertação irá analisar de que maneira gênero é incluído nas discussões dos projetos do Banco à nível institucional. A pesquisa será feita através de documentação disponível para o público geral, documentos internos e entrevistas em vídeo com pessoal do BID. Após uma análise dos dados coletados, recomendações para ações futuras serão dadas.