Risk, Uncertainty and Entrepreneurship: Evidence from a Lab-in-the-Field Experiment

Martin van Koudstaal, Randolph Sloof, Mirjam Van Praag

    Publikation: Bidrag til bog/antologi/rapportKonferencebidrag i proceedingsForskningpeer review

    Abstrakt

    Theory predicts that entrepreneurs have distinct attitudes towards risk and uncertainty, but empirical evidence is mixed. To better understand the unique behavioral characteristics of entrepreneurs and the causes of these mixed results, we perform a large ‘lab-in- the-field’ experiment comparing entrepreneurs to managers – a suitable comparison group – and employees (n=2288) . The results indicate that entrepreneurs perceive themselves as less risk averse than managers and employees, in line with common wisdom. However, when using experimental incentivized measures, the differences are subtler. Entrepreneurs are only found to be unique in their lower degree of loss aversion, and not in their risk or ambiguity aversion. This combination of results might be explained by our finding that perceived risk attitude is not only correlated to risk aversion but also to loss aversion. Overall, we therefore suggest using a broader definition of risk that captures this unique feature of entrepreneurs; their willingness to risk losses.
    OriginalsprogEngelsk
    TitelProceedings of the Seventy-fifth Annual Meeting of the Academy of Management
    RedaktørerJohn Humphreys
    Antal sider6
    UdgivelsesstedBriar Cliff Manor, NY
    ForlagAcademy of Management
    Publikationsdato2015
    Sider1280-1285
    Artikelnummer17257
    DOI
    StatusUdgivet - 2015
    BegivenhedThe Academy of Management Annual Meeting 2015: Opening Governance - Vancouver, Canada
    Varighed: 7 aug. 201511 aug. 2015
    Konferencens nummer: 75
    http://aom.org/annualmeeting/

    Konference

    KonferenceThe Academy of Management Annual Meeting 2015
    Nummer75
    LandCanada
    ByVancouver
    Periode07/08/201511/08/2015
    Internetadresse
    NavnAcademy of Management Proceedings
    ISSN2151-6561

    Emneord

    • Behavior
    • Entrepreneur
    • Manager

    Citationsformater