“…9 Real options reasoning has also been used to capture the strategic nature of entrepreneurial creation of wealth (McGrath, 1996) and postulated as a way of managing the costs of entrepreneurial failure (McGrath, 1999). In particular, if applied to entrepreneurial exit decisions, real options reasoning provides a framework in which (part of) the effect of 8 Real options reasoning has been, e.g., applied to environmental and agricultural economics (Arrow and Fisher, 1974;Pietola and Myers, 2000;Purvis et al, 1996;Richards and Patterson, 2004), to land conversion and conservation intervention (Titman, 1985;Quigg, 1993), as well as to the economic policy of reforms (Dewatripont and Roland, 1995). 9 It has been, e.g., applied to business incubation (Hackett and Dilts, 2004), organizational resource investment (Bowman and Hurry, 1993), and intergenerational transfer (Miljkovic, 2000).…”