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Measuring the Subjective Value of Risky and Ambiguous Options using Experimental Economics and Functional MRI Methods
Published on: September 19, 2012
Real option logic for healthcare entrepreneurial growth and survival
David R Williams1, Paul H Hammes
1Department of Management, John A. Walker College of Business, Appalachian State University, Boone, NC, USA. williamsdr@appstate.edu
Abstract:
Given the increasing market and technological uncertainty of capital investments, healthcare financial executives need to incorporate flexibility into their decision making. Traditional capital budgeting techniques do not take into consideration the need for flexibility, changes in the environment, or actions by management. In response, practitioners from various industries have adopted a new way of looking at capital investments: real options.
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