Real Option Empirical Research in Management


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For several decades, management scholars have extolled the virtues of using real option logic when making decisions under uncertainty. Real option logic suggests that in such situations, firms might be better off deferring or staging investments, minimizing potential financial losses, while at the same time securing an option to grow (or abandon) the investment when uncertainty abates.

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Image courtesy of interviewee. February 7, 2020

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