Economics is interested in how limited resources are allocated. In my research, I have focused on analyzing large investment projects with the help of simulation models and (real) options theory. Option theory deals with the valuation of possibilities and alternatives. For example, production facilities may be closed temporarily once the prices of products drop below the economic break-even and re-opened when the market prices normalize. In the global markets (electricity production, metals mining, wood products, etc.) one may agree to sell the product(s) using a fixed for a specified time period (hedging) giving up the possible, yet uncertain, extra revenues induced by the market price changes. These are some of the examples of precautionary actions that fall into the general category of real options. Word “option” refers to a possibility, but not an obligation to take action. Because preparing oneself for future uncertainties costs money, the main question is that in which conditions and how one should implement real options and, moreover, what would be a reasonable price to pay for them.
I work as a post-doctoral researcher at LUT-University in the research groups of Strategic Finance and Business Analytics. Before my doctoral dissertation (2016) and academic career (2017-), I worked in various positions in the metal mining industry during 2008-2017.