According to the features of uncertainty,irreversibility,public nature and flexibility of highway project investment,a real option model with stochastic variables to determine construction timing of highway project is presented.The geometric brownian motion was used to describe uncertainty factors of highway project investment including the passenger flow and construction cost in the model.The influence functions of construction timing of the uncertainty factors were deduced to reveal the influence of deferring investment.Operational value and external value were used to reflect economic benef...
