The behavioral theory of the firm and prospect theory predict that performance below an aspiration level increases risk taking, but researchers also propose that performance below an aspiration level decreases risk taking. These conflicting predictions primarily hinge on whether decision makers...

Recent work on multiunit-multimarket (MUMM) firms has shown that the market entry behavior of these firms is influenced by learning processes and by opportunities for reduced competition with firms that have a high degree of multimarket contact. There is still uncertainty as to the prominence of...