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
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: Suggested Citation