What makes and what does not make a real option? A study of international joint ventures

• Main Authors: CUYPERS, Ilya, MARTIN, Xavier
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2006
• Subjects: alliances and joint ventures; China; equity shares; real options; uncertainty; international markets; decision making; International Business; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/1085; https://ink.library.smu.edu.sg/context/lkcsb_research/article/2084/viewcontent/ambpp.2006.22896816.pdf
• Institution: Singapore Management University

This paper examines the boundaries of real options logic, with an application to joint ventures (JVs). We distinguish between forms of uncertainty that are resolved endogenously and those that are resolved exogenously, and theorize that only exogenous uncertainty will have the impact predicted by re...