The Good, the Bad, and the Talented: Entrepreneurial Talent and Other-Regarding Behavior
AbstractTalent allocation models assume that entrepreneurial talent is selfish and thus allocates into unproductive or even destructive activities if these offer the highest private returns. This paper experimentally analyzes other-regarding preferences of entrepreneurial talent. We find that making a distinction between creative talent and business talent explains systematic differences in other-regarding behavior. Generally, business talent is less willing, and creative talent more willing, to forego private payoffs to avoid losses to others. A moderator analysis reveals that uncreative business talent is significantly less other-regarding than creative business talent, a finding applicable to both certain and risky payoffs with and without negative externalities. The paper makes a contribution to entrepreneurship research by qualifying the implications of talent allocation models and discovering the importance of distinguishing between the two types of entrepreneurial talent. We also add to the field of experimental economics by advancing research on social preferences under risk and with negative externalities.
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Bibliographic InfoPaper provided by Utrecht School of Economics in its series Working Papers with number 09-18.
Length: 27 pages
Date of creation: Jul 2009
Date of revision:
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Other versions of this item:
- Utz Weitzel & Diemo Urbig & Sameeksha Desai & Zoltan Acs & Mark Sanders, 2009. "The Good, the Bad, and the Talented: Entrepreneurial Talent and Other-Regarding Behavior," Jena Economic Research Papers 2009-066, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- O43 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
- P48 - Economic Systems - - Other Economic Systems - - - Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
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