Apache Clip #2

  • Clip URL: https://criticalcommons.org/view?m=Qq8HFpP7m
  • Concepts: Option value, decision under uncertainty.
  • Background: Carlos is offered a spot in a good soccer development academy (Argentinos). However, better academies exist, and Carlos dreams of joining Boca’s Academy, the most prestigious in Argentina. Therefore he has to decide whether to join Argentinos or give up on this opportunity and see whether a better academy will select him.
  • Question: Discuss the decision process Carlos has to go through to make this decision to join (or not) Argentinos’ academy. What risk is he taking by rejecting Argentinos’ offer?