A Hubris Theory of Entrepreneurship
Abstract
This paper develops a hubris theory of entrepreneurship to explain why so many new ventures are created in the shadow of high venture failure rates: More confident actors are moved to start ventures, and then act on such confidence when deciding how to allocate resources in their ventures. Building on theory and evidence from the behavioral decision-making literature, we describe how founders’ socially constructed confidence affects the manner...
Paper Details
Title
A Hubris Theory of Entrepreneurship
Published Date
Feb 1, 2006
Journal
Volume
52
Issue
2
Pages
160 - 172
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