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Weather derivatives have emerged as a generally acknowledged, if not widely utilized, risk management product within the past 5 to 10 years. The authors of this article compare the costs and benefits of weather derivatives in relation to insurance contracts for hedging weather risk, within the context of long‐term trends in hedging demand due to global warming. The article finds that, as global warming results in increased climactic variation and greater frequency and intensity of climatic anomalies (i.e., higher volatility), derivatives may provide coverage at a lower cost than standard insurance.

Firms grant non‐tradable stock options to their employees as an incentive device. Is the cost of issuing these options equal to the amount the company would receive if it sold the same options to outside investors? The evaluation of this cost is the main objective of this article. The options granted to employees are not tradable, due to the incentive scheme to which they are related. A non‐tradable option is an asset that cannot be evaluated with standard Black‐Scholes formulas.

The article adopts standard option pricing, introducing some corrections since Black‐Scholes formulae do not apply. The new formulae show the dependence of option values on how diversified both the employees and the firm are; and the influence that the incentive to work by employees has on the stock price.

Once stock options satisfy a participation constraint, they can be granted to employees who stand to gain. However, they do not provide a net benefit in all circumstances to shareholders since they may gain, break even, or lose. Even though in many cases stock options may appear to be an inefficient way to stimulate work effort, in start‐ups and entrepreneurial firms they turn out to be quite beneficial.

Stock option opportunity costs have to be valued taking into account the extent of their non‐tradability and the incentive they provide to employees.

The article introduces a correction for valuing non‐tradable stock options. This permits us to measure properly the opportunity cost of stock options, which is often mis‐specified.

This survey explores the application of real options theory to the field of health economics. The integration of options theory offers a valuable framework to address these challenges, providing insights into healthcare investments, policy analysis and patient care pathways.

This research employs the real options theory, a financial concept, to delve into health economics challenges. Through a systematic approach, three distinct models rooted in this theory are crafted and analyzed. Firstly, the study examines the value of investing in emerging health technology, factoring in future advantages, associated costs and unpredictability. The second model is patient-centric, evaluating the choice between immediate treatment switch and waiting for more clarity, while also weighing the associated risks. Lastly, the research assesses pandemic-related government policies, emphasizing the importance of delaying decisions in the face of uncertainties, thereby promoting data-driven policymaking.

Three different real options models are presented in this study to illustrate their applicability and value in aiding decision-makers. (1) The first evaluates investments in new technology, analyzing future benefits, discount rates and benefit volatility to determine investment value. (2) In the second model, a patient has the option of switching treatments now or waiting for more information before optimally switching treatments. However, waiting has its risks, such as disease progression. By modeling the potential benefits and risks of both options, and factoring in the time value, this model aids doctors and patients in making informed decisions based on a quantified assessment of potential outcomes. (3) The third model concerns pandemic policy: governments can end or prolong lockdowns. While awaiting more data on the virus might lead to economic and societal strain, the model emphasizes the economic value of deferring decisions under uncertainty.

This research provides a quantified perspective on various decisions in healthcare, from investments in new technology to treatment choices for patients to government decisions regarding pandemics. By applying real options theory, stakeholders can make more evidence-driven decisions.

Decisions about patient care pathways and pandemic policies have direct societal implications. For instance, choices regarding the prolongation or ending of lockdowns can lead to economic and societal strain.

The originality of this study lies in its application of real options theory, a concept from finance, to the realm of health economics, offering novel insights and analytical tools for decision-makers in the healthcare sector.

Given the growing emphasis on environmental consciousness and sustainability as core principles within most companies, product-service systems are recognized as strategic approaches to achieving sustainability objectives. Consequently, understanding consumer acceptance of these systems is of paramount importance. This study seeks to explore users' perspectives on the barriers that impede the adoption of product-service systems, intending to prioritize these obstacles.

This study utilizes a social media-based approach, specifically analyzing tweets related to Zipcar, an American car rental company that exemplifies a usage-oriented product-service system. The analysis identifies the factors influencing the acceptance of this system. The study utilizes topic modeling and sentiment analysis techniques to analyze the tweets. The opportunity value of each topic is determined, aiding in the identification of topics that require improvement. Furthermore, the interrelation between topics is explored, followed by correlation analysis to assess their significance.

Eight topics strongly related to the keywords are identified. Among them, “responsiveness”, “responsibility”, and “trust” hold the highest opportunity values. The findings emphasize the importance of service providers proactively addressing the obstacles that impede consumers' willingness to adopt product-service systems. Prioritization should be given to topics with higher opportunity values.

This research uncovers the primary obstacles to adopting the product-service system by directly considering consumer opinions and providing a prioritized list of these obstacles.