Two approaches can be distinguished with respect to modelling entrepreneurship: (i) the approachfocusing on the net … development of the number of entrepreneurs in an equilibrium framework and (ii)the approach focusing on the entries and exits of … entrepreneurs. In this paper we unify these ap-proaches to arrive at a model explaining the equilibrium and actual number of …

Empirical evidence suggests that entrepreneurs make mistakes: too many enter markets and, once there, persist too long … mistakes may also arise from a process in which entrepreneurs continually learn about their prospects, and make entry and exit …-entry learning and can be directed to analyze Bayesian rational or biased entrepreneurs. The model suggests that, to outside …

The main contribution of entrepreneurship theory to economics is to provide an account of market performance in …