We study the behavioral drivers of market entry. An experiment allows us to disentangle the impact on entry across different types of markets of two key behavioral mechanisms: overconfidence and attitude toward ambiguity. We theorize and show that the causal effect of overconfidence on entry is...

Starting a business requires investing both money and time in the hope of future financial benefits. Since investments and potential gains happen over time, the way in which individuals value the future relative to the present—i.e., their temporal preferences—may be an important driver...

Entrepreneurship scholars are interested in understanding and describing how entrepreneurs make decisions under uncertainty, where the probabilities of outcomes are not known but perceived, resulting in ambiguous probabilities. In this context, ambiguity refers to the lack of precise and...