IDEAS home Printed from https://ideas.repec.org/h/elg/eechap/13502_2.html
   My bibliography  Save this book chapter

Risk and Ambiguity: Entrepreneurial Research from the Perspective of Economics

In: Neuroeconomics and the Firm

Author

Listed:
  • Angela A. Stanton
  • Isabell M. Welpe

Abstract

The ideal firm has been studied over several centuries, yet little is known about what makes one successful and another fail. This pioneering book brings together leading researchers investigating the concept of the firm from a neuroscientific perspective.

Suggested Citation

  • Angela A. Stanton & Isabell M. Welpe, 2010. "Risk and Ambiguity: Entrepreneurial Research from the Perspective of Economics," Chapters, in: Angela A. Stanton & Mellani Day & Isabell M. Welpe (ed.), Neuroeconomics and the Firm, chapter 2, Edward Elgar Publishing.
  • Handle: RePEc:elg:eechap:13502_2
    as

    Download full text from publisher

    File URL: https://www.elgaronline.com/view/9781848444409.00011.xml
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Saulo Barbosa & Megan Gerhardt & Jill Kickul, 2007. "The Role of Cognitive Style and Risk Preference on Entrepreneurial Self-Efficacy and Entrepreneurial Intentions," Post-Print hal-02312750, HAL.
    2. I. Gilboa & W. A. Postlewaite & D. Schmeidler, 2009. "Probability and Uncertainty in Economic Modeling," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 10.
    3. Norris F. Krueger Jr. & Deborah V. Brazeal, 1994. "Entrepreneurial Potential and Potential Entrepreneurs," Entrepreneurship Theory and Practice, , vol. 18(3), pages 91-104, April.
    4. Forlani, David & Mullins, John W., 2000. "Perceived risks and choices in entrepreneurs' new venture decisions," Journal of Business Venturing, Elsevier, vol. 15(4), pages 305-322, July.
    5. Thierry Post & Martijn J. van den Assem & Guido Baltussen & Richard H. Thaler, 2008. "Deal or No Deal? Decision Making under Risk in a Large-Payoff Game Show," American Economic Review, American Economic Association, vol. 98(1), pages 38-71, March.
    6. Tversky, Amos & Kahneman, Daniel, 1992. "Advances in Prospect Theory: Cumulative Representation of Uncertainty," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 297-323, October.
    7. White, Roderick E. & Thornhill, Stewart & Hampson, Elizabeth, 2006. "Entrepreneurs and evolutionary biology: The relationship between testosterone and new venture creation," Organizational Behavior and Human Decision Processes, Elsevier, vol. 100(1), pages 21-34, May.
    8. Paul J Zak & Angela A Stanton & Sheila Ahmadi, 2007. "Oxytocin Increases Generosity in Humans," PLOS ONE, Public Library of Science, vol. 2(11), pages 1-5, November.
    9. Rustichini, Aldo & Dickhaut, John & Ghirardato, Paolo & Smith, Kip & Pardo, Jose V., 2005. "A brain imaging study of the choice procedure," Games and Economic Behavior, Elsevier, vol. 52(2), pages 257-282, August.
    10. Newman, Andrew F., 2007. "Risk-bearing and entrepreneurship," Journal of Economic Theory, Elsevier, vol. 137(1), pages 11-26, November.
    11. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    12. Camerer, Colin & Weber, Martin, 1992. "Recent Developments in Modeling Preferences: Uncertainty and Ambiguity," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 325-370, October.
    13. G. Dosi & M. Egidi, 2000. "Substantive and Procedural Uncertainty: An Exploration of Economic Behaviours in Changing Environments," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 5, pages 165-188, Edward Elgar Publishing.
    14. Sharon A. Alvarez, "undated". "Two Theories of Entrepreneurship: Alternative Assumptions and the Study of Entrepreneurial Action," Papers on Entrepreneurship, Growth and Public Policy 2005-19, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    15. Maner, Jon K. & Gerend, Mary A., 2007. "Motivationally selective risk judgments: Do fear and curiosity boost the boons or the banes?," Organizational Behavior and Human Decision Processes, Elsevier, vol. 103(2), pages 256-267, July.
    16. Knutson, Brian & Wimmer, G. Elliott & Kuhnen, Camelia & Winkielman, Piotr, 2008. "Nucleus accumbens activation mediates the influence of reward cues on financial risk-taking," MPRA Paper 8013, University Library of Munich, Germany.
    17. Cramer, J. S. & Hartog, J. & Jonker, N. & Van Praag, C. M., 2002. "Low risk aversion encourages the choice for entrepreneurship: an empirical test of a truism," Journal of Economic Behavior & Organization, Elsevier, vol. 48(1), pages 29-36, May.
    18. Kip Smith & John Dickhaut & Kevin McCabe & José V. Pardo, 2002. "Neuronal Substrates for Choice Under Ambiguity, Risk, Gains, and Losses," Management Science, INFORMS, vol. 48(6), pages 711-718, June.
    19. Hean Tat Keh & Maw Der Foo & Boon Chong Lim, 2002. "Opportunity Evaluation under Risky Conditions: The Cognitive Processes of Entrepreneurs," Entrepreneurship Theory and Practice, , vol. 27(2), pages 125-148, April.
    20. Einhorn, Hillel J & Hogarth, Robin M, 1986. "Decision Making under Ambiguity," The Journal of Business, University of Chicago Press, vol. 59(4), pages 225-250, October.
    21. Itzhak Gilboa & Andrew Postlewaite & David Schmeidler, 2007. "Probabilities in Economic Modeling," PIER Working Paper Archive 07-023, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    22. Stanton, Angela A., 2007. "Neural Substrates of Decision-Making in Economic Games," MPRA Paper 4030, University Library of Munich, Germany, revised 10 Jun 2007.
    23. Karine Gallopel & Patrick Legohérel & Philippe Callot & Mike Peters, 2004. "Personality characteristics, attitude toward risk, and decisional orientation of the small business entrepreneur : a study of hospitality managers," Post-Print halshs-00069025, HAL.
    24. Smithson, Michael & Bartos, Thomas & Takemura, Kazuhisa, 2000. "Human judgment under sample space ignorance," Risk, Decision and Policy, Cambridge University Press, vol. 5(2), pages 135-150, June.
    25. Elke U. Weber & Richard A. Milliman, 1997. "Perceived Risk Attitudes: Relating Risk Perception to Risky Choice," Management Science, INFORMS, vol. 43(2), pages 123-144, February.
    26. Janney, Jay J. & Dess, Gregory G., 2006. "The risk concept for entrepreneurs reconsidered: New challenges to the conventional wisdom," Journal of Business Venturing, Elsevier, vol. 21(3), pages 385-400, May.
    27. Brian Wu & Anne Marie Knott, 2006. "Entrepreneurial Risk and Market Entry," Management Science, INFORMS, vol. 52(9), pages 1315-1330, September.
    28. Baron, Robert A., 2004. "The cognitive perspective: a valuable tool for answering entrepreneurship's basic "why" questions," Journal of Business Venturing, Elsevier, vol. 19(2), pages 221-239, March.
    29. Alvarez, Sharon A., 2005. "Theories of Entrepreneurship: Alternative Assumptions and the Study of Entrepreneurial Action," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 1(3), pages 105-148, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pérez-Centeno, Victor, 2018. "Brain-driven entrepreneurship research: Expanded review and research agenda towards entrepreneurial enhancement," Working Papers 02/18, Institut für Mittelstandsforschung (IfM) Bonn.
    2. Sinha, Rai Siddhant, 2022. "Baby, I'm addicted! The pleasure-pain pathway that shifts entrepreneurial passion to entrepreneurial addiction: Pivotal role of dopamine," Journal of Business Venturing Insights, Elsevier, vol. 18(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andreas Hack & Frauke Bieberstein & Nils D. Kraiczy, 2016. "Reference point formation and new venture creation," Small Business Economics, Springer, vol. 46(3), pages 447-465, March.
    2. Laurent Denant-Boemont & Olivier L’Haridon, 2013. "La rationalité à l'épreuve de l'économie comportementale," Revue française d'économie, Presses de Sciences-Po, vol. 0(2), pages 35-89.
    3. Koellinger, Philipp & Minniti, Maria & Schade, Christian, 2007. ""I think I can, I think I can": Overconfidence and entrepreneurial behavior," Journal of Economic Psychology, Elsevier, vol. 28(4), pages 502-527, August.
    4. Foster, Gigi & Frijters, Paul & Schaffner, Markus & Torgler, Benno, 2018. "Expectation formation in an evolving game of uncertainty: New experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 154(C), pages 379-405.
    5. Mercè Roca & Robin Hogarth & A. Maule, 2006. "Ambiguity seeking as a result of the status quo bias," Journal of Risk and Uncertainty, Springer, vol. 32(3), pages 175-194, May.
    6. Diederik Aerts & Emmanuel Haven & Sandro Sozzo, 2018. "A proposal to extend expected utility in a quantum probabilistic framework," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 65(4), pages 1079-1109, June.
    7. Diederik Aerts & Emmanuel Haven & Sandro Sozzo, 2016. "A Proposal to Extend Expected Utility in a Quantum Probabilistic Framework," Papers 1612.08583, arXiv.org.
    8. Dan K. Hsu & Johan Wiklund & Richard D. Cotton, 2017. "Success, Failure, and Entrepreneurial Reentry: An Experimental Assessment of the Veracity of Self–Efficacy and Prospect Theory," Entrepreneurship Theory and Practice, , vol. 41(1), pages 19-47, January.
    9. Richard J. Arend, 2020. "Strategic decision-making under ambiguity: a new problem space and a proposed optimization approach," Business Research, Springer;German Academic Association for Business Research, vol. 13(3), pages 1231-1251, November.
    10. Maria Claudia Angel Ferrero & Véronique Bessière, 2016. "From Lab to Venture: Cognitive Factors Influencing Researchers' Decision to Start a Venture," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 24(02), pages 101-131, June.
    11. Peter, Richard & Ying, Jie, 2020. "Do you trust your insurer? Ambiguity about contract nonperformance and optimal insurance demand," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 938-954.
    12. Aerts, Diederik & Geriente, Suzette & Moreira, Catarina & Sozzo, Sandro, 2018. "Testing ambiguity and Machina preferences within a quantum-theoretic framework for decision-making," Journal of Mathematical Economics, Elsevier, vol. 78(C), pages 176-185.
    13. Levesque, Moren & Schade, Christian, 2005. "Intuitive optimizing: experimental findings on time allocation decisions with newly formed ventures," Journal of Business Venturing, Elsevier, vol. 20(3), pages 313-342, May.
    14. Paul Dolan & Martin Jones, 2004. "Explaining Attitudes Towards Ambiguity: An Experimental Test Of The Comparative Ignorance Hypothesis," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(3), pages 281-301, August.
    15. Venkatraman, Srinivasan & Aloysius, John A. & Davis, Fred D., 2006. "Multiple prospect framing and decision behavior: The mediational roles of perceived riskiness and perceived ambiguity," Organizational Behavior and Human Decision Processes, Elsevier, vol. 101(1), pages 59-73, September.
    16. Albert Danso & Samuel Adomako & John Ofori Damoah & Moshfique Uddin, 2016. "Risk-taking Propensity, Managerial Network Ties and Firm Performance in an Emerging Economy," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 25(2), pages 155-183, September.
    17. Shawn P. Curley, 2007. "The application of Dempster-Shafer theory demonstrated with justification provided by legal evidence," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 2, pages 257-276, October.
    18. Angela A. Stanton, 2010. "Hormonal Influence on Male Decision-making: Implications for Organizational Management," Chapters, in: Angela A. Stanton & Mellani Day & Isabell M. Welpe (ed.), Neuroeconomics and the Firm, chapter 8, Edward Elgar Publishing.
    19. Matthias Brachert & Walter Hyll & Abdolkarim Sadrieh, 2020. "Entry into self-employment and individuals’ risk-taking propensities," Small Business Economics, Springer, vol. 55(4), pages 1057-1074, December.
    20. Just, David R. & Zilberman, David, 2005. "Behavior, Production and Competition," Working Papers 127075, Cornell University, Department of Applied Economics and Management.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:elg:eechap:13502_2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Darrel McCalla (email available below). General contact details of provider: http://www.e-elgar.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.