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Intuitive versus contemplative : do entrepreneurs differ in their decision-making style from managers and employees?

Koudstaal, Martin; Sloof, Randolph; Praag, Mirjam van - 2017

We examine in a large survey (n = 1,928) how contemplative entrepreneurs, managers and employees are in their decision … choices are partly in line with this: entrepreneurs make indeed more intuitive choices than managers, but are equally …) equal those of managers. Together these findings tentatively suggest that entrepreneurs start from a stronger prior …

Persistent link: https://www.econbiz.de/10011739416

Are entrepreneurs more optimistic and overconfident than managers and employees?

Koudstaal, Martin; Sloof, Randolph; Praag, Mirjam van - 2015

others. However, the same holds true for top managers. In this lab-in-the-field experiment we directly compare the scores of … entrepreneurs, managers and employees on a comprehensive set of measures of optimism and overconfidence (n = 2,058). The results … when bad events occur. For incentivized measures of overconfidence we find no difference between entrepreneurs and managers …

Persistent link: https://www.econbiz.de/10011378220

Fixed costs matter

Kamphorst, Jurjen; Mendys-Kamphorst, Ewa; Westbrock, Bastian - 2018

According to standard economic wisdom, fixed costs should not matter for pricing decisions. However, outside economics, it is widely accepted that firms need to increase their prices after a fixed cost rise. In this note, we show that a liquidity-constrained firm that maximizes lifetime profits...

Persistent link: https://www.econbiz.de/10011936060

Everybody's doing it : on the emergence and persistence of bad social norms

Smerdon, David; Offerman, Theo; Genîzî, Ûrî - 2016

Social norms permeate society across a wide range of issues and are important to understanding how societies function. In this paper we concentrate on 'bad' social norms - those that are inefficient or even damaging to a group. This paper explains how bad social norms evolve and persist; our...

Persistent link: https://www.econbiz.de/10011446896

Last-In first-out oligopoly dynamics

Abbring, Jaap H.; Campbell, Jeffrey R. - 2009

This paper extends the static analysis of oligopoly structure into an infinite-horizon setting with sunk costs and demand uncertainty. The observation that exit rates decline with firm age motivates the assumption of last-in first-out dynamics: An entrant expects to produce no longer than any...

Persistent link: https://www.econbiz.de/10011350350

Duopoly dynamics with a barrier to entry

Abbring, Jaap H.; Campbell, Jeffrey R. - 2007

This paper considers the effects of raising the cost of entry for a potential competitor on infinite-horizon Markov-perfect duopoly dynamics with ongoing demand uncertainty. All entrants serving the model industry incur sunk costs, and exit avoids future fixed costs. We focus on the unique...

Persistent link: https://www.econbiz.de/10011372510

A structural model of tenure and specific investments

Teulings, Coen N.; Ende, Martin Adriaan van der - 2002

Though a lot of work has been done on the distribution of job tenures, we are still uncertain about its main determinants.In this paper, we stress random shocks to match productivity after the start of an employment relation.The specificity of investment makes hiring and separation decisions...

Persistent link: https://www.econbiz.de/10011302603