There is some anecdotal evidence that option to abandon, Ask an Expert

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There is some anecdotal evidence that option to abandon does not have as much value as theory predicts, because managers tend to get attached to a project and abandon it later than they should. Can you think of other exs, when behavioral bias affects the value of real options? How would you suggest to adjust the theoretically predicted value?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M942913

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