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Entrepeneurs under Uncertainty: an Economic Experiment in China

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Abstract

This study reports findings from the first large scale experiment investigating whether entrepreneurs differ from other people in their willingness to expose themselves to various forms of uncertainty in decision on tasks. A stratified random sample of 700 CEOs from the Yangzi delta region in China is compared to 200 control group members. Our findings suggest that in economic decisions, entrepreneurs are more willing to accept strategic uncertainty related to multilateral competition and trust. However, entrepreneurs do not differ from ordinary people when it comes to non-strategic forms of uncertainty, such as risk and ambiguity

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Bibliographic Info

Paper provided by Knut Wicksell Centre for Financial Studies, Lund University in its series Knut Wicksell Working Paper Series with number 2013/1.

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Length: 27 pages
Date of creation: 23 Jan 2013
Date of revision:
Publication status: Published as Holm, Håkan J., Sonja Opper and Victor Nee, 'Entrepeneurs under Uncertainty: an Economic Experiment in China' in Management Science , 2013, pages 1671-1687.
Handle: RePEc:hhs:luwick:2013_001

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Postal: Knut Wicksell Centre for Financial Studies, Lund University School of Economics and Management, P.O. Box 7080, S-220 07 Lund, Sweden
Phone: +46 46-222 32 61
Fax: +46 46-222 34 06
Web page: http://www.lusem.lu.se/kwc
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Keywords: Entrepreneurship; Risk; Ambiguity; Willingness to Compete; Trust;

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References

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Cited by:
  1. Andersson, Ola & Holm, Håkan J. & Tyran, Jean-Robert & Wengström, Erik, 2013. "Risking Other People’s Money: Experimental Evidence on Bonus Schemes, Competition, and Altruism," Working Paper Series, Research Institute of Industrial Economics 989, Research Institute of Industrial Economics.

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