This paper presents evidence on the role of the endowment effect in shaping the risk-taking behavior of entrepreneurs, and how the potential of losing their firms lead them to take higher risks. This study uses an experimental design with 466 entrepreneurs in Cali, Colombia. Results show that...

Introduction -- Foundations: psychology -- Foundations: neuroscience and neuroeconomics -- Learning -- Socially and identity -- Heuristics and biases -- Prospects and regrets -- Personality, moods and emotions -- Time and plans -- Bad habits -- Financial instability -- Behavioural...