Individual antecedents of real options appraisal: The role of national culture and ambiguity

Tarik Driouchi, Lenos Trigeorgis and Raymond H.Y. So

European Journal of Operational Research, 2020, vol. 286, issue 3, 1018-1032

Abstract: This paper studies the antecedents of cognitive options appraisal in a cross-cultural sample of specialists and generalists. Examining the role of national culture and ambiguity in the real option logic, we show that individuals have more propensity to intuitively value options opportunities using ambiguity-based approaches than standard Bayesian benchmarks, and identify the drivers behind such behavioral deviations. We find that knowledge and cultural factors, along with age, gender and international life experience, influence subjective real options values and ambiguity attitudes. Results also confirm the higher tolerance for uncertainty of the Chinese relative to others.

Keywords: Real options; Ambiguity; Multiple-priors; Choquet utility; National culture (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:286:y:2020:i:3:p:1018-1032

DOI: 10.1016/j.ejor.2020.03.015

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