The Decision-Making Analysis of Adoption Subjects of Financial Innovation

This paper analyses that the micro decision-making behaviors of the adoption subjects of financial innovation activities, it demonstrates that the decision-making behaviors are the investment problems under conditions of uncertainty to a large extent, and the subjects has the right to delay investment. The paper adopted a monopolistic real option model to describe the basic decision-making behaviors of innovation individuals facing innovation opportunities. Compared with the traditional net present value (NPV) rules, the authors conclude that the value of the investment opportunities that be calculated by real option method give full consideration to the volatility in the future and the corresponding changes of decision-making, and it provides a more objective and reasonable theoretical basis for investment decision-making of financial innovation activities.