Real options pricing and organizations: The contingent risks of extended theoretical domains

• 成果类型: Editorial Material
• 署名作者: Kogut, B; Kulatilaka, N
• 署名单位: INSEAD Business School; Boston University
• 刊物名称: ACADEMY OF MANAGEMENT REVIEW
• ISSN/ISSBN: 0363-7425
• 发表日期: 2004
• 页码: 102-110
• 关键词: flexibility

摘要

As options models move from financial markets to corporate decision making, it is fitting to question the simple domain extension of option pricing theory by considering behavioral decision-making biases. We suggest, however, that, given the negative evolutionary consequences of ignoring optionlike investments, organizations invent heuristic rules to counter these biases. We propose the idea of a domain translation that shows how the basic insight of option pricing can be preserved through evolving complementary organizational rules.