While academic and practitioner literature has advocated the use of real options in firms' long-term investment appraisal processes, few studies have examined the extent to which real options are incorporated into decisions when they are made available. We experimentally examine supervising...

Real options approach is a method of evaluating and managing strategic investments decisions in an uncertain business environment. Current era is characterized by increased uncertainty because of changed market conditions, globalization, increased competition, emerging technologies etc. The...

We present a model of firm investment under uncertainty and partial irreversibility in which uncertainty is represented by a jump diffusion. This allows to represent both the continuous Gaussian volatility and the discontinuous uncertainty related to information arrival, sudden changes and large...