Decision dilemmas facing managers: recognizing the value of learning while making sequential decisions
The paper brings attention to an often neglected factor that can have a significant impact on whether a multi-stage project is worth continuing--the potential for learning in its development process. After explicating the economics of a project's learning potential, the paper explores its implications for the practice of project management and for the design of future experimental studies on managerial behavior in funding multi-stage projects.
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Volume (Year): 23 (1995)
Issue (Month): 3 (June)
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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Garland, Howard & Newport, Stephanie, 1991. "Effects of absolute and relative sunk costs on the decision to persist with a course of action," Organizational Behavior and Human Decision Processes, Elsevier, vol. 48(1), pages 55-69, February.
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- M. L. Weitzman & K. Roberts, 1979. "Funding Criteria for Research, Development and Exploration Projects," Working papers 234, Massachusetts Institute of Technology (MIT), Department of Economics.
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- Robert S. Pindyck, 1992.
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NBER Working Papers
4175, National Bureau of Economic Research, Inc.
- Schwenk, C & Tang, M-Je, 1989. "Economic and psychological explanations for strategic persistence," Omega, Elsevier, vol. 17(6), pages 559-570.
- Whyte, Glen, 1993. "Escalating Commitment in Individual and Group Decision Making: A Prospect Theory Approach," Organizational Behavior and Human Decision Processes, Elsevier, vol. 54(3), pages 430-455, April.
- Ingersoll, Jonathan E, Jr & Ross, Stephen A, 1992. "Waiting to Invest: Investment and Uncertainty," The Journal of Business, University of Chicago Press, vol. 65(1), pages 1-29, January.
- Boot, Arnoud W A, 1992. " Why Hang on to Losers? Divestitures and Takeovers," Journal of Finance, American Finance Association, vol. 47(4), pages 1401-23, September.
- Northcraft, Gregory B. & Neale, Margaret A., 1986. "Opportunity costs and the framing of resource allocation decisions," Organizational Behavior and Human Decision Processes, Elsevier, vol. 37(3), pages 348-356, June.
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