Entrepreneurial optimism and creative destruction

Arbeitspapier

We provide empirical evidence that uncertainty (rather than risk) and optimism are distinctive characteristics of high-impact entrepreneurial firms (recently listed firms) relative to old, incumbent firms. Based on this evidence, we construct an entrepreneurial entry predation model with uncertainty. We show that entrepreneurial optimism can mitigate problems associated with strong incumbents' attempts to protect markets using predatory threats. Entrepreneurial optimism can also create a strategic advantage for entrepreneurs since incumbents may react by being less aggressive in product market interactions, which will benefit not only the profitability of the entrepreneur's venture but also consumers via lower prices.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IFN Working Paper ; No. 1218

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Firm Objectives, Organization, and Behavior: General ; Entrepreneurship ; Business Economics: General ; Innovation; Research and Development; Technological Change; Intellectual Property Rights: General
• Thema: Uncertainty ; Optimism ; Entrepreneurial firms ; Predation ; Positive externalities ; Automatic textual analysis

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Persson, Lars ; Seiler, Thomas
• Ereignis: Veröffentlichung
• (wer): Research Institute of Industrial Economics (IFN)
• (wo): Stockholm
• (wann): 2018

Weitere Informationen

• Handle: http://hdl.handle.net/10419/183447
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ