This paper conducts the first general equilibrium analysis of the role of entry, exit and profits in industry dynamics. The benefit of our model is twofold. First, to discriminate between entrants' role of performing the entrepreneurial function of creating disequilibrium and the conventional...

This dissertation sheds light on how the categorical fit between venture capitalists and startups affect the matching process before a funding round. The study uses market categories to measure new venture’s distinctiveness and the cultural distance between venture capitalists and new...

We develop a new perspective on the boundary of the firm that is consistent with the empirical observation that the share of entrepreneurs first decreases and then increases in the course of economic development. Existing theory based on transaction costs is difficult to relate to these...