Binomial Real Option Pricing for Restaurant Menu Analysis

Material TypeArticleLanguageEnglish
TitleBinomial Real Option Pricing for Restaurant Menu Analysis Author(S)Chih-Yun Yang (Author)
Abstract  Numerous researchers have proposed methods to improve the profitability of restaurant menus. The profit-analysis techniques that have been proposed generally assess menu items according to popularity as against comparative contribution margin or a similar scheme that theoretically allows managers to apply a portfolio adjustment approach or simply to replace items that are low in profitability. However, none of the analytical models discussed in the literature consider the element of time, which is an essential consideration in planning for menu item replacement. ...Paginationp 273-282
SubjectHome economicsDescriptorsHospitality industry
Journal TitleCornell Hospitality Quarterly  
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