Differential dynamic decision-making model for multi-stage investment of scenic area
Differential has been extensively applied in solving many engineering matters. The development of tourism destination with multiple scenic spots is a long-term systematic project and the existing decision-making methods are actually not suitable for this process. Thus it is necessary to introduce ne...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2020-08-01
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| Series: | Alexandria Engineering Journal |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S1110016820302957 |
| _version_ | 1819138851361259520 |
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| author | Qijie Jiang Zhuoyao Xin Yue Li Sheng Ma Qianyou Zhang |
| author_facet | Qijie Jiang Zhuoyao Xin Yue Li Sheng Ma Qianyou Zhang |
| author_sort | Qijie Jiang |
| collection | DOAJ |
| description | Differential has been extensively applied in solving many engineering matters. The development of tourism destination with multiple scenic spots is a long-term systematic project and the existing decision-making methods are actually not suitable for this process. Thus it is necessary to introduce new decision-making method to analyse the investment process of tourism destination project. Specifically, considering the irreversibility and extendibility of destination development, the present paper constructed a differential dynamic decision-making model for the long-term investment project based on the classical model of real option; B-S model, and analysed the key parameters affecting the modified model; the present price of the project (ω) and the volatility (δ). An example analysis and a case from Yinziyan scenic area were further analysed to test the operability of the proposed model. The proposed model contributes to dealing with uncertainties and enhancing the decision quality of investors in the investment of scenic spots. And the application of differential in tourism destination development contributes to the accuracy of decision-making. Therefore, this paper has both theoretical and practical significance. |
| first_indexed | 2024-12-22T11:13:20Z |
| format | Article |
| id | doaj.art-d31ef23aee82422e85dc603cda08782f |
| institution | Directory Open Access Journal |
| issn | 1110-0168 |
| language | English |
| last_indexed | 2024-12-22T11:13:20Z |
| publishDate | 2020-08-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Alexandria Engineering Journal |
| spelling | doaj.art-d31ef23aee82422e85dc603cda08782f2022-12-21T18:28:05ZengElsevierAlexandria Engineering Journal1110-01682020-08-0159428192826Differential dynamic decision-making model for multi-stage investment of scenic areaQijie Jiang0Zhuoyao Xin1Yue Li2Sheng Ma3Qianyou Zhang4Business School, Chengdu University, Chengdu, ChinaCollege of Economics and Management, Southwest University, Chongqing, China; Corresponding author.College of Tourism, Sichuan Agricultural University, Chengdu, ChinaBusiness School, Chengdu University, Chengdu, ChinaBusiness School, Chengdu University, Chengdu, ChinaDifferential has been extensively applied in solving many engineering matters. The development of tourism destination with multiple scenic spots is a long-term systematic project and the existing decision-making methods are actually not suitable for this process. Thus it is necessary to introduce new decision-making method to analyse the investment process of tourism destination project. Specifically, considering the irreversibility and extendibility of destination development, the present paper constructed a differential dynamic decision-making model for the long-term investment project based on the classical model of real option; B-S model, and analysed the key parameters affecting the modified model; the present price of the project (ω) and the volatility (δ). An example analysis and a case from Yinziyan scenic area were further analysed to test the operability of the proposed model. The proposed model contributes to dealing with uncertainties and enhancing the decision quality of investors in the investment of scenic spots. And the application of differential in tourism destination development contributes to the accuracy of decision-making. Therefore, this paper has both theoretical and practical significance.http://www.sciencedirect.com/science/article/pii/S1110016820302957DifferentialDecision-making methodBlack-Scholes modelScenic spot explorationReal option |
| spellingShingle | Qijie Jiang Zhuoyao Xin Yue Li Sheng Ma Qianyou Zhang Differential dynamic decision-making model for multi-stage investment of scenic area Alexandria Engineering Journal Differential Decision-making method Black-Scholes model Scenic spot exploration Real option |
| title | Differential dynamic decision-making model for multi-stage investment of scenic area |
| title_full | Differential dynamic decision-making model for multi-stage investment of scenic area |
| title_fullStr | Differential dynamic decision-making model for multi-stage investment of scenic area |
| title_full_unstemmed | Differential dynamic decision-making model for multi-stage investment of scenic area |
| title_short | Differential dynamic decision-making model for multi-stage investment of scenic area |
| title_sort | differential dynamic decision making model for multi stage investment of scenic area |
| topic | Differential Decision-making method Black-Scholes model Scenic spot exploration Real option |
| url | http://www.sciencedirect.com/science/article/pii/S1110016820302957 |
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