A real options model of resource extraction is considered where management controls both the extraction rates as well as the quality of extracted material earmarked for processing into final product. The minimum quality of material acceptable for processing is called the cutoff grade. If the...

We design an experiment to understand how social preferences affect investment decisions through stock allocations and probability assessments. The major preference channel is asymmetric in social outcomes – although negative and positive responsible investment (RI) externalities have the same...