This paper studies the investment timing problem of an entrepreneur with a non- tradable real option with undiversifiable risk. We find that the time preference can have a significant impact on the risk attitude toward the idiosyncratic risk, which re- sults from the wealth effect on the implied...

We consider a decision maker's problem in a real option framework with several projects that can only be sequentially undertaken within a "decision horizon" - the time until projects are expired - and characterize the optimal sequence of exercises. A limited decision horizon leads to early...

Real options are a type of investment choice that supports decision-makers in making better strategic management decisions while simultaneously reducing uncertainty in investments. In this paper, we present a new model to help investors handle uncertain investment environments flexibly. First,...