A Behavioral Study on Abandonment Decisions in Multistage Projects
Abstract
In uncertain environments, project reviews provide an opportunity to make “continue or abandon” decisions and thereby maximize a project’s expected payoff. We experimentally investigate continue/abandon decisions in a multistage project under two conditions: when the project is reviewed at every stage and when review opportunities are limited. Our results confirm findings in the literature that project abandonment tends to be delayed; yet, we...
Paper Details
Title
A Behavioral Study on Abandonment Decisions in Multistage Projects
Published Date
May 1, 2020
Journal
Volume
66
Issue
5
Pages
1999 - 2016
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