Do real options lead to escalation of commitment?

• 成果类型: Editorial Material
• 署名作者: Zardkoohi, A
• 署名单位: Texas A&M University System; Texas A&M University College Station
• 刊物名称: ACADEMY OF MANAGEMENT REVIEW
• ISSN/ISSBN: 0363-7425
• 发表日期: 2004
• 页码: 111-119
• 关键词: strategy; investments; allocation; BEHAVIOR; CHOICE; MODEL; loans; firm; RISK

摘要

I examine the concern that unconstrained real options can lead to escalation. of commitment and identify contexts in which escalation of commitment is likely. I argue that these situations fall primarily outside the realm of unregulated for-profit organizations and also that the predictions of agency and attribution theories counter the predictions of the escalation of commitment framework. Finally, I assert that optimality requires flexibility in the timing of the exercise of real options when returns on investment are volatile.