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 of investment under uncertainty, when resource accumulation takes time and there is imperfect competition.
Content: Article
Authors: Goncalo Pacheco-de-Almeida, Peter Zemsky
Source: INSEAD Knowledge
Subjects: Finance, Management
Authors: Goncalo Pacheco-de-Almeida, Peter Zemsky
Source: INSEAD Knowledge
Subjects: Finance, Management
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