The Real World of Real Options

To what extent do firms pursue strategies of flexibility in response to uncertainty – to what extent do they use ‘real options’? Goncalo Pacheco-de-Almeida and Professor Peter Zemsky explain how resource accumulation affects whether a firm will jump into an investment from the get-go, or if it will take the option to wait for investment. They present research in a realistic light, offering a theory … [ Read more ]