Entrepreneurship and Team Participation: An Experimental Study
AbstractEntrepreneurs are surprisingly unlikely to have partners. In spite of the obvious advantages to forming partnerships, only a small minority of entrepreneurs (less than 10%, excluding family businesses) have partners. A number of possible explanations exist for this puzzling phenomenon, including an inability to locate suitable partners, fear of free-riding by partners, and a preference for not working in groups. Utilizing a diverse subject population with a high proportion of active entrepreneurs, we use a team production experiment to study whether entrepreneurs prefer to work alone or in a team. The data indicate that entrepreneurs, while no more likely to free-ride on their teammates, are substantially less interested in joining teams. This suggests that efforts to encourage partnership among entrepreneurs may run contrary to the preferences of this group.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 25144.
Date of creation: Feb 2010
Date of revision:
Entrepreneurship; Teams; Artefactual Field Experiment;
Other versions of this item:
- Cooper, David J. & Saral, Krista Jabs, 2013. "Entrepreneurship and team participation: An experimental study," European Economic Review, Elsevier, vol. 59(C), pages 126-140.
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-09-25 (All new papers)
- NEP-ENT-2010-09-25 (Entrepreneurship)
- NEP-EXP-2010-09-25 (Experimental Economics)
- NEP-MIC-2010-09-25 (Microeconomics)
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