We analyze a dynamic investment problem where decisions are made through voting within a group of agents with … unanimously deemed profitable by each member---and inertia---investment is delayed relative to a single-agent case. When facing … both investment and abandonment timing decisions, the group behavior cannot be replicated by that of a representative or …

Real Options is the term used to refer to the application of option pricing theory to the valuation of investments in …

. Moreover, the real option theory suggests that investment flexibility has an intrinsic value, as it allows concessionaires to … the impact of concession length and investment timing flexibility on the "concession value." It is generally argued that … investment timing flexibility, should always result in higher concession values. Our result suggests that this is not always the …