standard option pricing inapplicable. Therefore we parametrize the investor's risk preference and use utility indifference … problem. We show empirically how model ambiguity affects project values, and importantly, how option values change as model …

option on a bundle of resources. Competing potential buyers may sequentially perform due diligence and incur costs (option …). The first player’s bid provides a signal on its own and rivals’ target value, thereby affecting potential bidders’ option … value. The level of information costs and the option value, affected by heterogeneity between bidders (correlation), their …