Extant theory holds that new entrants' pre-entry experience is an important asset that enhances their post-entry performance. While the logic is compelling, empirical findings have been inconsistent. We argue that this gap results, in part, because the empirical literature tends to confound two...

We develop a behavioral theory of real options that relaxes the informational and behavioral assumptions underlying applications of financial options theory to real assets. To do so, we augment real option theory's focus on uncertain future asset values (prospective uncertainty) with feedback...

Entrants are often viewed as suffering from a “liability of newness” — at founding they rarely possess the knowledge and capabilities necessary to compete and survive. They can overcome this liability by learning vicariously from the knowledge of incumbent firms. But how can entrants learn...