... , 0 = λ i > 0 ,     a i < 0 ,     b i > 0. where δ > 0 is the appropriate discount rate, τ is optimal timing of investment, and c >* 0 is an investment cost. The investor owns an embedded option to invest that can only...

... have completed the service differ significantly in evaluating the self and social value of the human capital during the military service. This difference corresponds to the predictions of the cognitive-bias literature. The authors test propositions in option framework. This study’s experimental design...