Activity 2: Real Options Study and Model

Project dates: 11/05/2017 - Ongoing

At a glance

The Real Options Model will make PPPs more flexible.

Overview

In using real-options theory for the first time in an educational setting for both government financed and private financed schools and using real data arising from operating existing schools captured in Activity 1: Value Rating Study and Tool, this model will be developed to explore how higher economic value can be achieved by anticipating the changes that are likely to occur over the life of a school, for example, in the demographics in the school’s catchment area, technology and in pedagogy. In doing so, a new operationalisation of option-like strategic thinking will be developed. A further novel outcome will be to show how the outcomes of this model flow back into the finalised full design for a new school and associated contractual documents, so that they are designed to give maximum flexibility to make changes, in an efficient manner, during the school’s operation.

In a presentation to project partners in July 2020, Chief Investigator Associate Professor Adrian Bridge presented an overview of the research significance, method and work to date. Ongoing work on Activity 2: Real Options Study and Model is underway. Please contact Associate Professor Adrian Bridge for further updates.

Please click to download presentation