Anmerkungen:
In: Annual Review of Resource Economics
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments February 5, 2019 erstellt
Beschreibung:
The literature on real options shows irreversibilities, uncertainties about future benefits and costs, and the flexibility in decision making generate benefits and costs of delaying immediate action. When applied to government policy making, real options models can lead to efficient policies that take full account of these trade-offs, but can also cause strategic behavior that tries to delay policies through influencing important elements such as downside risks. This contribution reviews the latest developments in this import field of real options based policy research by looking at what we know about the benefits from waiting - the good, the costs from waiting - the bad, and how strategic behavior can influence policies - the ugly. Much has been said in the literature about the good and the bad, but more work is needed to study the ugly aspects of real options driven policies