Incorporating Overconfidence into Real Option Decision-Making Model of Metal Mineral Resources Mining Project
Joint Authors
Tan, Na
Zhong, Mei-rui
Huang, Jian-bai
Source
Discrete Dynamics in Nature and Society
Issue
Vol. 2014, Issue 2014 (31 Dec. 2014), pp.1-11, 11 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2014-07-03
Country of Publication
Egypt
No. of Pages
11
Main Subjects
Abstract EN
As for uncertainties and decision-makers’ overconfidence psychological bias, overconfidence has been incorporated into real option decision-making model of metal mineral resources mining to estimate its effect on decision-making of the project and thus a behavioral real option decision-making model of metal mineral resources mining based on overconfidence has been established.
Furthermore, numerical simulation and sensitivity analysis have been conducted to verify the practicality of the model.
Results show that model in this paper has greatly changed trigger value and option value of mineral resources mining project compared with traditional real option model, thus greatly changing optimal decision results.
Incorporating overconfidence into real option decision-making model of metal mineral resources development is a crucial extension of project evaluation theory.
American Psychological Association (APA)
Huang, Jian-bai& Tan, Na& Zhong, Mei-rui. 2014. Incorporating Overconfidence into Real Option Decision-Making Model of Metal Mineral Resources Mining Project. Discrete Dynamics in Nature and Society،Vol. 2014, no. 2014, pp.1-11.
https://search.emarefa.net/detail/BIM-455900
Modern Language Association (MLA)
Huang, Jian-bai…[et al.]. Incorporating Overconfidence into Real Option Decision-Making Model of Metal Mineral Resources Mining Project. Discrete Dynamics in Nature and Society No. 2014 (2014), pp.1-11.
https://search.emarefa.net/detail/BIM-455900
American Medical Association (AMA)
Huang, Jian-bai& Tan, Na& Zhong, Mei-rui. Incorporating Overconfidence into Real Option Decision-Making Model of Metal Mineral Resources Mining Project. Discrete Dynamics in Nature and Society. 2014. Vol. 2014, no. 2014, pp.1-11.
https://search.emarefa.net/detail/BIM-455900
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-455900