A prisoner's dilemma approach to entrepreneur-venture capitalist relationships

Academy of Management Review

Volumn 22, Issue 1, 1997, Pages 142-176

  Cable, Daniel M ^a   Shane, Scott ^a  

^a NONE

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0031477023     PISSN: 03637425     EISSN: None     Source Type: Journal    
DOI: 10.5465/AMR.1997.9707180262     Document Type: Article

References (89)

1. Abreu, D., Milgrom, P., & Pearce, D. 1991. Information and timing in repeated partnerships. Econometrica, 59(6): 1713-1733.
2. Altman, I., & Taylor, D. 1973. Social Penetration: The Development of Interpersonal Relationships. New York: Holt Rienehart and Winston, Inc.
3. Amit, R., Glosten, L., & Muller, E. 1990a. Entrepreneurial ability, venture investments, and risk sharing. Management Science, 38(10): 1232-1245.
4. Amit, R., Glosten, L., & Muller, E. 1990b. Does venture capital foster the most promising entrepreneurial firms? California Management Review, 32: 102-111.
5. Amit, R., Glosten, L., & Muller, E. 1993. Challenges to theory development in entrepreneurship research. Journal of Management Studies, 30(5): 815-834.
6. Andreoni, J., & Miller, J. 1993. Rational cooperation in the finitely repeated prisoner's dilemma: Experimental evidence. The Economic Journal, 103: 570-585.
7. Apfelbaum, E. 1974. On conflicts and bargaining. Advances in Experimental Social Psychology, 7: 103-156.
8. Aram, J. 1989. The paradox of interdependent relations in the field of social issues in management. Academy of Management Review, 4(2): 266-283.
9. Arrow, K. 1974. Limited knowledge and economic analysis. American Economic Review, 64(1): 1-10.
10. Axelrod, R. 1980. More effective choice in the prisoner's dilemma. Journal of Conflict Resolution, 24(3): 379-403.
11. Axelrod, R. 1984. The evolution of cooperation. New York: Basic Books.
12. Axelrod, R., & Dion, D. 1988. The further evolution of cooperation. Science, 242: 1385-1390.
13. Barney, J. B., Busenitz, L. W., Fiet, J. O., & Mosel, D. 1994. Determinants of a new venture team's receptivity to advice from venture capitalists. In W. Bygrave, S. Birley, N. Churchill, E. Gatewood, F. Hoy, R. Keeley, & W. Wetzel (Eds.), Frontiers of Entrepreneurship Research, 321-335. Babson Park: Babson College.
14. Bendor, J., Kramer, R., & Stout, S. 1991. When in doubt: Cooperation in a noisy prisoner's dilemma. Journal of Conflict Resolution, 35: 691-719.
15. Ben-Yoav, O., & Pruitt, D. 1984. Resistance to yielding and the expectation of cooperative future interaction in negotiation. Journal of Experimental Social Psychology, 20: 3223-3253.
16. Bowden, R. 1994. Bargaining, size and return in venture capital funds. Journal of Business Venturing, 9: 307-330.
17. Braver, S. 1975. Reciprocity, cohesiveness and cooperation in two-person games. Psychological Reports, 36: 371-378.
18. Bruno, A., & Tyebjee, T. 1985. The entrepreneur's search for capital. Journal of Business Venturing, 1: 61-74.
19. Bygrave, W., & Timmons, J. 1992. Venture capital at the crossroads. Boston: Harvard Business School Press.
20. Bygrave, W., & Timmons, J. 1991. Venture and risk capital: Practice and performance, promises and policy. Boston: Harvard Business School Press.
21. Byrne, D. 1969. Attitudes and attraction. In L. Berkowitz (Ed.), Advances in experimented social psychology, 4: 35-89. New York: Academic Press.
22. Chatman, J. 1989. Improving interactional organizational research: A model of person organization fit. Academy of Management Review, 14: 333-349.
23. Chertkoff, J., & Esser, J. 1976. A review of experiments in explicit bargaining. Journal of experimental social psychology, 12: 464-486.
24. Corfman, K., & Lehman, D. 1994. The prisoner's dilemma and the role of information in setting advertising budgets. Journal of Advertising, 23(2): 35-47.
25. Dawes, R. 1980. Social dilemmas. Annual review of psychology, 31: 169-193.
26. Dawes, R., McTavish, J., & Shaklee, H. 1977. Behavior, communication and assumptions about other people's behavior in a commons dilemma situation. Journal of personality and social psychology, 35: 1-11.
27. Evans, D., & Jovanovic, B. 1989. An estimated model of entrepreneurial choice under liquidity constraints. Journal of Political Economy, 97(4): 808-827.
28. Ferris, G. R., & Judge, T. A. 1991. Personnel/human resource management: A political influence perspective. Journal of Management, 17: 447-488.
29. Fiet, J. 1995. Reliance upon informants in the venture capital industry. Journal of Business Venturing, 10: 195-223.
30. Fredriksen, O., Klofsten, M., Landstrom, H., Olofsson, C., & Wahlbin, C. Entrepreneur venture capitalist relations: The entrepreneur's views. In N. Churchill, W. Bygrave, J. Hornaday, D. Muzyka, K. Vesper, & W. Wetzel (Eds.), Frontiers of entrepreneurship research, 251-280, Babson Park: Babson College.
31. Freear, J., Sohl, J., & Wetzel, W. 1990. Raising venture capital: Entrepreneurs' views of the process. In N. Churchill, W. Bygrave, J. Hornaday, D. Muzyka, K. Vesper, & W. Wetzel (Eds.), Frontiers of entrepreneurship research, 262-275, Babson Park: Babson College.
32. Fried, V., & Hisrich, R. 1995. The venture capitalist: A relationship venture capitalist. California Management Review, 37(2): 101-113.
33. Friedman, J. 1990. Game theory with applications to economics. London: Oxford University Press.
34. Gabarro, J. 1979. Socialization at the top-How CEOs and subordinates evolve interpersonal contracts. Organizational Dynamics, Winter: 3-23.
35. Gomez-Mejia, L., Balkin, D., & Welbourne, T. 1990. Influence of venture capitalists on high tech management. The Journal of High Technology Management Research, 1: 103-118.
36. Gorman, M., & Sahlman, W. 1989. What do venture capitalists do? Journal of Business Venturing, 4: 231-248.
37. Granovetter, M. 1985. Economic action, social structure, and embeddedness. American Journal of Sociology, 91(3): 481-510.
38. Gupta, A., & Sapienza, H. 1992. Determinants of venture capital firms' preferences regarding the industry diversity and geographic scope of their investments. Journal of Business Venturing, 7: 347-362.
39. Hamner, W. 1974. Effects of bargaining strategy and pressure to reach agreement in a stalemated negotiation. Journal of Personality and Social Psychology, 30(4): 458-467.
40. Hoffman, H., and Blakely, J. 1987. You can negotiate with venture capitalists. Harvard Business Review, (March-April): 6-24.
41. Hustedde, R., & Pulver, G. 1992. Factors affecting equity capital acquisition: The demand side. Journal of Business Venturing, 7: 363-374.
42. Jackson, S. E., Brett, J. F., Sessa, V. I., Cooper, D. M., Julin, J. A., & Peyronnin, K. 1991. Some differences make a difference: Individual dissimilarity and group heterogeneity as correlates of recruitment, promotions, and turnover. Journal of Applied Psychology, 76: 675-689.
43. Keren, G., & Raub, W. 1993. Resolving social conflicts through hostage posting: Theoretical and empirical considerations. Journal of Experimental Psychology, 122(4): 429-448.
44. Kirzner, I. 1973. Competition and entrepreneurship. Chicago: University of Chicago Press.
45. Komorita, S., Hilty, J., & Parks, C. 1991. Reciprocity and cooperation in social dilemmas. Journal of Conflict Resolution, 35(3): 494-518.
46. Lam, S. 1991. Venture capital financing: A conceptual framework. Journal of Business Finance and Accounting, 18(2): 137-149.
47. Lindskold, S., Betz, B., & Walters, P. 1986. Transforming competitive or cooperative climates. Journal of Conflict Resolution, 30(1): 99-114.
48. Lindskold, S., & Han, G. 1988. GRIT as a foundation for integrative bargaining. Personality and Social Psychology Bulletin, 14(2): 335-345.
49. Luce, R., & Raiffa, H. 1957. Games and decisions. New York: Wiley.
50. MacMillan, I., & Narasihmha, P. 1987. Characteristics distinguishing funded from unfunded business plans evaluated by venture capitalists. Strategic Management Journal, 8: 579-585.
51. MacMillan, I., Kulow, D., & Khoylian, R. 1989. Venture capitalists involvement in their investments: Extent and performance. Journal of Business Venturing, 4: 27-47.
52. MacMillan, I., Siegel, R., & Subba Narasimha, P. 1985. Criteria used by venture capitalists to evaluate new venture proposals. Journal of Business Venturing, 1(1): 119-128.
53. March, J. 1988. Variable risk preferences and adaptive aspirations. Journal of Economic Behavior and Organization, 9: 5-24.
54. March, J., & Shapira, Z. 1987. Managerial perspectives on risk and risk taking. Management Science, 33(11): 1404-1418.
55. McNeel, S., & Reid, E. 1975. Attitude similarity, social goals and cooperation. Journal of Conflict Resolution, 19: 665-681.
56. Molander, P. 1985. The optimal level of generosity in a selfish, uncertain environment. Journal of Conflict Resolution, 29(4): 611-618.
57. Nemeth, C. 1972. A critical analysis of research utilizing the prisoner's dilemma paradigm for the study of bargaining. In L. Berkowitz (Ed.), Advances in Experimental Social Psychology: New York: Academic Press.
58. Parkhe, A. 1993. Strategic alliance structuring: A game theoretic and transaction cost examination of interfirm cooperation. Academy of Management Journal, 38(4): 794-829.
59. Pfeffer, J. (1981). Power in organizations. Marshfield, MA: Pitman.
60. Pruitt, D. 1967. Reward structure and cooperation: The decomposed prisoner's dilemma game. Journal of Personality and Social Psychology, 7: 21-27.
61. Pruitt, D. 1971. Indirect communication and the search for agreement in negotiation. Journal of Applied Social Psychology, 1(3) 205-239.
62. Pruitt, D. 1981. Negotiation Behavior. New York: Academic Press.
63. Pruitt, D., & Drews, J. 1969. The effect of time pressure, time elapsed, and the opponent's concession rate on behavior in negotiation. Journal of Experimental Social Psychology, 5: 43-60.
64. Pruitt, D., & Kimmel, M. 1977. Twenty years of experimental gaming: Critique, synthesis, and suggestions for the future. Annual Review of Psychology, 28: 363-392.
65. Rapoport, A., & Chammah, A. 1965. Prisoner's dilemma: A study in conflict and cooperation. Ann Arbor: University of Michigan Press.
66. Rea, R. 1989. Factors affecting success and failure of seed capital/start-up negotiations. Journal of Business Venturing, 4: 149-158.
67. Roberts, E. 1990. Initial capital for the new technology enterprise. IEEE Transactions in Engineering Management, 37(2): 81-94.
68. Roberts, E. 1991. High stakes for high-tech entrepreneurs: Understanding venture capital decision making. Sloan Management Review, 9: 19-20.
69. Rubin, J., & Brown, B. 1975. The Social psychology of bargaining and negotiation. New York: Academic Press.
70. Sahlman, W. 1990. The structure and governance of venture-capital organizations. Journal of Financial Economics, 27: 473-521.
71. Sapienza, H. 1989. Variations in venture-capitalist-entrepreneur relations: Antecedents and consequences. Unpublished doctoral dissertation, University of Maryland.
72. Sapienza, H. 1992. When do venture capitalists add value? Journal of Business Venturing 7: 9-27.
73. Sapienza, H., and Gupta, A. 1989. Pursuit of innovation by new ventures and its effects on venture-capitalist-entrepreneur relations. In R. Brockhaus, N. Churchill, J. Katz, B. Kirchhoff, K. Vesper, & W. Wetzel (Eds.). Frontiers of Entrepreneurship Research: 304-317. Babson Park, MA: Babson College.
74. Sapienza, H., & Timmons, J. 1989. Launching and building entrepreneurial companies: Do the venture capitalists add value? In R. Brockhaus, N. Churchill, J. Katz, B. Kirchhoff, K. Vesper, and W. Wetzel (Eds.), Frontiers of Entrepreneurship Research: 245-257. Babson Park, MA: Babson College.
75. Sapienza, H., & Korsgaard, M. 1996. The role of procedural justice in entrepreneur-venture capitalist capital relations. Academy of Management Journal, 39: 544-574.
76. Schuessler, R. 1989. Exit threats and cooperation under anonymity. Journal of Conflict Resolution, 33(4): 728-749.
77. Schoonhoven, K., Eisenhardt, K., & Lyman, K. 1990. Speeding products to market: Waiting time to first product introduction in new firms. Administrative Science Quarterly, 35: 177-207.
78. Smith, W. 1987. Conflict and negotiation: Trends and emerging issues. Journal of Applied Social Psychology, 17: 641-677.
79. Steier, L., & Greenwood, R. 1995. Venture capitalist relationships in the deal structuring and post-investment stages of new firm creation. Journal of Management Studies, 32: 337-357.
80. Stryker, S., & Serpe, R. T. 1982. Commitment, identity, salience, and role behavior. In W. Ickes & E. S. Knowles (Eds.), Personality, Roles, and Social Behavior, 89-103. New York: Springer-Verlag.
81. Sweeting, R. 1991. UK venture capital funds and the funding of new technology-based businesses: Process and relationships. Journal of Management Studies, 28: 601-622.
82. Timmons, J., & Bygrave, W. 1986. Venture capital's role in financing innovation for economic growth. Journal of Business Venturing, 1: 161-176.
83. Tsui, A. S., & O'Reilly, C. A. 1989. Beyond simple demographic effects: The importance of relational demography in superior-subordinate dyads. Academy of Management Journal, 32: 402-123.
84. Tversky, A., & Kahneman, D. 1986. Rational choice and the framing of decisions. Journal of Business, 59: 251-276.
85. Weick, K. E. 1979. The social psychology of organizing. New York: Random House.
86. Williamson, O. 1975. Markets and hierarchies. New York: Free Press.
87. Word, C. O., Zanna, M. P., & Cooper, J. 1974. The nonverbal mediation of self-fulfilling prophecies in interracial interaction. Journal of Experimental Social Psychology, 10: 109-120.
88. Wu, J., & Axelrod, R. 1995. How to cope with noise in the iterated prisoner's dilemma. Journal of Conflict Resolution, 39: 183-189.
89. Zemel, E. 1989. Small talk and cooperation: A note on bounded rationality. Journal of Economic Theory, 29: 1-9.