The paper by Zhuming Chen and Xue Luo finds that diverse trader beliefs in venture capital projects lead to different optimal capital investment levels but have minimal impact on timing decisions . Using a two-stage model based on real options game theory, the study reveals that varying beliefs reduce optimal capital investment but don’t significantly affect timing. This reflects the "agree to disagree" phenomenon. Learning processes can mitigate these negative effects, though varying required returns can exacerbate them.

Understanding how heterogeneous beliefs impact investment decisions can inform better risk management and strategic planning in venture capital, potentially improving investment outcomes and returns .