Keywords
agency theory, zombies
Abstract
Real options apply the theory typically used to value financial options to situations in which goods and services whose consumption can be timed or selected. Agency theory applies to situations in which connected decision-makers have different valuations. Teaching students about these topics is a worthwhile addition to their toolbox. They are common in some electives for undergraduate finance (and occasionally economics) majors, and also in required and elective graduate courses. This paper uses popular culture narratives about zombies to explain where net present valuation falls short, and where real option valuation and agency theory offer improvements.
Recommended Citation
Tufte, D. (2019). Just Shoot! Using Real Options and Agency Theory to Explain the Tough Choices in Zombie Narratives. Mountain Plains Journal of Business and Economics, 20(1). Retrieved from https://openspaces.unk.edu/mpjbt/vol20/iss1/4
