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Decision dilemmas facing managers: recognizing the value of learning while making sequential decisions

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  • Chi, T.
  • Nystrom, P. C.

Abstract

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.

Suggested Citation

  • Chi, T. & Nystrom, P. C., 1995. "Decision dilemmas facing managers: recognizing the value of learning while making sequential decisions," Omega, Elsevier, vol. 23(3), pages 303-312, June.
    • Handle: RePEc:eee:jomega:v:23:y:1995:i:3:p:303-312
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    References listed on IDEAS

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    Cited by:

    1. Arman Avadikyan & Patrick Llerena, 2009. "Socio-technical transition processes: A real option based reasoning," Working Papers of BETA 2009-21, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    2. Li, Yong & Mahoney, Joseph T., 2011. "When are venture capital projects initiated?," Journal of Business Venturing, Elsevier, vol. 26(2), pages 239-254, March.
    3. Bragger, Jennifer DeNicolis & Bragger, Donald & Hantula, Donald A. & Kirnan, Jean, 1998. "Hyteresis and Uncertainty: The Effect of Uncertainty on Delays to Exit Decisions," Organizational Behavior and Human Decision Processes, Elsevier, vol. 74(3), pages 229-253, June.
    4. Li, Yong & James, Barclay & Madhavan, Ravi & Mahoney, Joseph T., 2006. "Real Options: Taking Stock and Looking Ahead," Working Papers 06-0114, University of Illinois at Urbana-Champaign, College of Business.

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