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Many academics strongly advocate using real options in valuation of intangible assets. See, for example, Damodaran's article. Nevertheless, this method is not used in practice

Many academics strongly advocate using real options in valuation of intangible assets. See, for example, Damodaran's article. Nevertheless, this method is not used in practice very often. In your opinion, what are the reasons for not seeing real option valuations of intangibles more often?

The issue remains, how accurately can we assign probabilities when we build real option models.

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The limited adoption of real option valuation for intangible assets in practice can be attributed to several factors 1 Complexity and Data Requirement... blur-text-image

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