Abstract
Abstract
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Emotions are largely absent in economic models. Possibly for this reason, many theories fail to explain the actual decisions made by managers.
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Therefore, we integrate emotions with regular microeconomic theory. We focus on FDI decisions, and include both economic and emotional variables in our analysis of the firm’s decision-making process.
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In our theoretical analysis, emotions are included in a utility maximization model that considers not only the utility of the firm but also the utility of the individual decision-maker.
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In our empirical analysis, the presence of emotions in FDI decision-making is tested using a sample of Dutch enterprises that considered an investment in Central or Eastern Europe between 1990 and 2000.
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van de Laar, M., de Neubourg, C. Emotions and foreign direct investment: A theoretical and empirical exploration. MANAGE. INT. REV. 46, 207–233 (2006). https://doi.org/10.1007/s11575-006-0045-2
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DOI: https://doi.org/10.1007/s11575-006-0045-2