Real Option Exercise Decisions in Information Technology Investments: a Comment

SN Operations Research Forum, 1(2020), Article 27

Posted: 5 Jan 2021

Date Written: October 20, 2020

Abstract

The paper comments on Khan et al. (J Assoc Inf Syst 18(5):372–402, 2017), who study real option exercise decisions in the context of a single IT project and in a portfolio setting, respectively. The issues identified concern the concept of (economic) rationality and the treatment of project interdependencies. The explanations provided may prove useful in other contexts.

Keywords: Real Options, Rationality, Investment Decisions

JEL Classification: D81, G13, G31

Suggested Citation

Schosser, Josef, Real Option Exercise Decisions in Information Technology Investments: a Comment (October 20, 2020). SN Operations Research Forum, 1(2020), Article 27, Available at SSRN: https://ssrn.com/abstract=3722518

Josef Schosser (Contact Author)

University of Passau ( email )

Innstrasse 27
Passau, 94032
Germany

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