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

Tarik Driouchi, Lenos Trigeorgis, Raymond So

Research output: Contribution to journalArticlepeer-review

6 Citations (Scopus)
148 Downloads (Pure)

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.
Original languageEnglish
Pages (from-to)1018-1032
Number of pages15
JournalEUROPEAN JOURNAL OF OPERATIONAL RESEARCH
Volume286
Issue number3
Early online date14 Mar 2020
DOIs
Publication statusPublished - 1 Nov 2020

Keywords

  • Ambiguity
  • Choquet utility
  • Multiple-priors
  • National culture
  • Real options

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