About the Author

Chan S. Park

Samuel Ginn Distinguished Professor of Engineering
Department of Industrial & Systems Engineering
3301P Shelby Center
Auburn University, AL 36849-5346

E-mail: park@eng.auburn.edu
Phone: (334) 844-1428
Fax: (334) 844-1381

"The engineer's primary tasks include planning for the acquisition of equipment, designing, and producing products economically. The processes of determining exactly which assets to invest in and how much to invest have a great deal of impact on the organization's 'bottom line' -the profitability-. Sound engineering economic decisions, considering both time and risk, are key to the success of any organization."

Education

  • Georgia Institute of Technology, Industrial Engineering (Ph.D)
  • Purdue University, Industrial Engineering (MSIE)
  • Hanyang University, Ceramic Engineering (BS)

Areas of Research Interest

  • Economic Decision Analysis
  • Real Options and Financial Engineering
  • Energy Economics

Books on Engineering Economics

  • Park, C. S., Fundamentals of Engineering Economics,2nd ed., Prentice-Hall, 2008.
  • Park, C. S., Contemporary Engineering Economics, 4th ed., Prentice-Hall, 2007.
  • Park, C. S., K. Sadler, K. Porteous, and M. Zuo, Contemporary Engineering Economics - A Canadian Perspective, 2nd edition, Addison Wesley Canada, 2001.
  • Park, C. S. and G. P. Sharp-Bette, Advanced Engineering Economics, John Wiley, 1990. (2nd edition is in progress)

Selected Recent Publications on Real Options/Energy Economics

  • Han, H. J. and C. S. Park, "A Study on Estimating Investment Timing of Real Options," The Engineering Economist, 53-3,(in press), 2008
  • Sozer, S.,C. S. Park, and J. Valenzuela"Economic Analysis of Electric Power Transmission Expansion," The Engineering Economist,(accepted), 2008
  • Kamaz, P., J. Valenzuela, and C. S. Park, "Transmission Congestion and Competition on Power Generation Expansion," IEEE Transactions on Power Systems, 22-1, pp. 156-163, 2007
  • Miller, L., and C. S. Park, "A Learning Real Options Framework for Process Design and Capacity Planning," Production and Operations Management, 14-1, pp. 5-20, 2005
  • Miller, Luke and C. S. Park, "Economic Analysis in the Maintenance, Repair, & Overhaul Industry: An Options Approach," The Engineering Economist, 49-1, pp. 21-41,2004.
  • Miller, L., Sung H. Choi, and C. S. Park, "Using an Options Approach to Evaluate Korean Information Technology Infrastructure," The Engineering Economist, 49-3, pp. 199-219, 2004.
  • Miller, Luke and C. S. Park, "Decision-Making Under Uncertainty--Real Options to the Rescue?," The Engineering Economist, Vol. 47, No. 2, pp. 105-150, 2002.
  • Herath, H. B. and C. S. Park, "Multi-Stage Capital Investment Opportunities as Compound Real Options," The Engineering Economist, Vol. 47, No. 1, pp. 1-27, 2002.
  • Herath, H. B. and C. S. Park, "Real Options Valuation and Its Relationship to Bayesian Decision-Making Methods," The Engineering Economist, Vol. 46, No. 1, pp. 1-32, 2001.
  • Herath, H. B., J. S. Jahera, and C. S. Park, "Deciding Which R&D Project to Fund," Corporate Finance Review, Vol. 5, No. 3, pp. 11-22, 2000.
  • Nembhard, H. B., L. Shi, and C. S. Park, "Real Options Models for Managing Manufacturing Systems Changes in the New Economy," The Engineering Economist, Vol. 45, No.3, pp. 232-258, 2000.
  • Park, C. S. and H. B. Herath, "Exploiting Uncertainty-Investment Opportunities as Real Options: A New Way of Thinking in Engineering Economics," The Engineering Economist, Vol. 45, No.1, pp. 1-32, 2000. (Winner of the 2000 Eugene L. Grant Award)
  • Herath , H. B and C. S. Park, "Economic Analysis of R&D Projects: An Options Approach," The Engineering Economist, Vol. 44, No.1, pp.1-35, 1999.

Recent Dissertations Supervised on Real Options/Financial Engineering

  • "Estimating Project Volatility and Developing Decision Support System in Real Options Analysis," Hyun Jin Han, PhD, 2007.
  • "Development of a Bayesian Real Options Framework and Its Application to Capital Budgeting Problems," Luke T. Miller, PhD, 2004.
  • "The Use of Real and Financial Options in Long-Term International Weapon Transaction Contracts," In Kew Hwang, PhD, 2004.
  • "On Application of Option Pricing Theory to Engineering Economic Decisions Under Uncertainty," Hemantha B. Herath, PhD, 1999.