Les Cahiers de Recherche - HEC Paris
Thomas Astebro, Holger Herz, Ramana Nanda and Roberto Weber
Seeking the Roots of Entrepreneurship: Insights from Behavioral Economics
Abstract: In this article, we critically evaluate what the existing
research shows regarding the individual determinants of entrepreneurship.
We begin by documenting a set of facts that seem to pose a challenge for
interpretations of entrepreneurship based on the standard expected utility
framework. Drawing on research in behavioral economics we then review three
sets of possible interpretations — risk aversion, overconfidence, and
non-pecuniary, taste-based factors — for understanding the empirical facts
related to the entry into, and persistence in entrepreneurship. The central
thesis of this article is that while all these candidate explanations have
merit and can account for some aspects of the facts above, there is little
evidence of a “smoking gun” that can completely account for all the
puzzling patterns we observe.
Keywords: entrepreneurship; risk aversion; overconfidence; taste; (follow links to similar papers)
JEL-Codes: L26; (follow links to similar papers)
22 pages, October 21, 2015
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
Questions (including download problems) about the papers in this series should be directed to Sandra Dupouy ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design Joakim Ekebom