Entrepreneurial optimism in the market for technological inventions

Organization Science

Volumn 21, Issue 1, 2010, Pages 150-167

  Dushnitsky, Gary ^a  

^a UNIVERSITY OF PENNSYLVANIA   (United States)

Author keywords

Cognitive bias; Entrepreneur; Invention; Investor; Optimism; Over confidence

Indexed keywords

EID: 77953792067     PISSN: 10477039     EISSN: 15265455     Source Type: Journal    
DOI: 10.1287/orsc.1090.0454     Document Type: Article

References (83)

1. Adner, R., P. Zemsky. 2006. A demand-based perspective on sustainable competitive advantage. Strategic Management J. 27(3) 215-239.
2. Akerlof, G. 1970. The market for lemons: Quality uncertainty and the market mechanism. Quart. J. Econom. 89 488-500.
3. Amit, R., L. Glosten, E. Muller. 1990. Entrepreneurial ability, venture investments, and risk sharing. Management Sci. 36(10) 1232-1245.
4. Anand, B., A. Galetovic. 2000. Weak property rights and hold-up in R&D. J. Econom. Management Strategy 9(4) 615-642.
5. Anton, J. J., D. A. Yao. 1994. Expropriation and inventions: Appropriable rents in the absence of property rights. Amer. Econom. Rev. 84(1) 191-209.
6. Anton, J. J., D. Yao. 2002. The sale of ideas: Strategic disclosure, property rights, and contracting. Rev. Econom. Stud. 69 513-531.
7. Arabsheibani, G., D. de Meza, J. Maloney, B. Pearson. 2000. And a vision appeared unto them of a great profit: Evidence of selfdeception among the self-employed. Econom. Lett. 67 35-41.
8. Argyres, N. S. 1999. The impact of information technology on coordination: Evidence from the B-2 "stealth" bomber. Organ. Sci. 10(20) 162-180.
9. Argyres, N. S., J. Bercovitz, K. J. Mayer. 2007. Complementarity and evolution of contractual provisions: An empirical study of IT services contracts. Organ. Sci. 18(1) 3-19.
10. Arora, A. 1995. Licensing tacit knowledge: Intellectual property rights and the market for know-how. Econom. Innovation New Tech. 4 41-59.
11. Arora, A., A. Fosfuri, A. Gambardella. 2001. Markets for Technology: Economics of Innovation and Corporate Strategy. MIT Press, Cambridge, MA.
12. Arrow, K. 1962. Economic welfare and the allocation of resources for innovations. R. R. Nelson, ed. The Rate and Direction of Incentive Activity: Economic and Social Factors. Princeton University Press, Princeton, NJ, 609-625.
13. Åstebro, T. 2003. The return to independent invention: Evidence of risk seeking, extreme optimism or skewness-loving? Econom. J. 113(484) 226-239.
14. Åstebro, T., S. A. Jeffrey, G. K. Adomdza. 2007. Inventor perseverance after being told to quit: The role of cognitive biases. J. Behav. Decision Making 20(3) 253-272.
15. Barberis, N., R. Thaler. 2003. A survey of behavioral finance. G. Constantinides, M. Harris, R. Stulz, eds. Handbook of the Economics of Finance. Elsevier/North-Holland, Amsterdam and Boston, 1053-1128.
16. Baum, J. A. C., J. Singh. 1996. Dynamics of organizational responses to competition. Soc. Forces 74 1261-97.
17. Bercovitz, J., M. Feldman. 2008. Academic entrepreneurs: Organizational change at the individual level. Organ. Sci. 19(1) 69-89.
18. Bhattacharya, S., J. Ritter. 1983. Innovation and communication: Signaling with partial disclosure. Rev. Econom. Stud. 50 331-46.
19. Bhide, A. 1999. The Origin and Evolution of New Businesses. Oxford University Press, Oxford.
20. Busenitz, L., J. Barney. 1997. Differences between entrepreneurs and managers in large organizations. J. Bus. Venturing 12(1) 9-30.
21. Camerer, C., D. Lovallo. 1999. Overconfidence and excess entry: An experimental approach. Amer. Econom. Rev. 89(1) 306-318.
22. Cohen, R. 2006. Sweet and Low: A Family Story. Farrar, Straus and Giroux, NY.
23. Cohen, W., R. Nelson, J. Walsh. 2001. Protecting their intellectual assets: Appropriability conditions and why US manufacturing firms patent (or not). NBER Working Paper 7552, National Bureau of Economic Research, Cambridge, MA.
24. Cooper, A. C., C. Y. Woo, W. C. Dunkelberg. 1988. Entrepreneurs' perceived chances for success. J. Bus. Venturing 3 97-108.
25. Docie, R. L. 2004. The Inventor's Bible: How to Market and License Your Brilliant Ideas. Ten Speed Press, Berkeley, CA.
26. Dushnitsky, G., J. M. Shaver. 2009. Limitations to inter-organizational knowledge acquisition: The paradox of corporate venture capital. Strategic Management J. Forthcoming.
27. Economist. 2006. Searching for the invisible man: Economics focus. (March 11).
28. Evans, D., B. Jovanovic. 1989. An estimated model of entrepreneurial choice under liquidity constraints. J. Political Econom. 97 808-827.
29. Evans, D., L. Leighton. 1989. Some empirical aspects of entrepreneurship. Amer. Econom. Rev. 9(3) 519-35.
30. Forbes, D. 2005. Are some entrepreneurs more overconfident than others? J. Bus. Venturing 20(5) 623-40.
31. Gallini, N., B. Wright. 1990. Technology transfer under asymmetric information. RAND J. Econom. 21(1) 147-160.
32. Gans, J. S., S. Stern. 2000. Incumbency and R&D incentives: Licensing the gale of creative destruction. J. Econom. Management Strategy 9(4) 485-511.
33. Gibbons, R. 1992. Game Theory for Applied Economists. Princeton University Press, Princeton, NJ.
34. Goldfarb, B., D. Kirsch, D. A. Miller. 2007. Was there too little entry during the dot com era? J. Financial Econom. 86(1) 100-144.
35. Gompers, P. 1995. Optimal investment, monitoring and the staging of venture capital. J. Finance 50(5) 1461-1489.
36. Hayward, M., D. Shepherd, D. Griffin. 2006. A hubris theory of entrepreneurship. Management Sci. 52 160-72.
37. Holmstrom, B. 1979. Moral hazard and observability. Bell. J. Econom. 10 74-91.
38. Kahneman, D., D. Lovallo.. 1993. Timid choices and bold forecasts: A cognitive perspective on risk taking. Management Sci. 39 17-31.
39. Kaplan, S. N., P. Stromberg. 2004. Characteristics, contracts, and actions: Evidence from venture capitalist analysis. J. Finance 59 2173-2206.
40. Kawasaki, G. 2007. Lies, lies, lies! Entrepreneur Magazine (March), http://www.entrepreneur.com/capitallies/index.html.
41. Khanna, T. 1998. The scope of alliances. Organ. Sci. 9(3) 340-355.
42. Kirsch, D., B. Goldfarb, A. Gera. 2008. Form or substance: The role of business plans in venture capital decision making. Strategic Management J. 30(5) 487-515.
43. Kim, P., H. E. Aldrich, L. Keister. 2006. Access (not) denied: The impact of financial, human, and cultural capital on entrepreneurial entry in the United States. Small Bus. Econom. 27 5-22.
44. Kirscht, J. P., D. P. Haefner, S. S. Kegeles, I. M. Rosenstock. 1966. A national study of health beliefs. J. Health and Human Behav. 7 248-254.
45. Koellinger, P., M. Minniti, C. Schade. 2007. "I think I can, I think I can": Overconfidence and entrepreneurial behavior. J. Econom. Psych. 28(4) 502-527.
46. Landier, A., D. Thesmar. 2009. Contracting with optimistic entrepreneurs: Theory and evidence. Rev. Financial Stud. 22(1) 117-150.
47. Lant, T., Z. Shapira. 2008. Managerial reasoning about aspirations and expectations. J. Econom. Behav. Organ. 66(1) 60-73.
48. Lazear, E. 1986. Salaries and piece-rates. J. Bus. 59 405-431.
49. Lazear, E. P. 1999. Output-based pay: Incentives or sorting. NBER Working Paper 7419, National Bureau of Economic Research, Cambridge, MA.
50. Leland, H. E., D. H. Pyle. 1977. Information asymmetries, financial structure, and financial intermediation. J. Finance 32 371-387.
51. Levin, R. C., A. K. Klevorick, R. R. Nelson, S. G. Winter. 1987. Appropriating the returns from industrial research and development. Brookings Papers on Econom. Activity 3 783-820.
52. Lowe, R., A. Ziedonis. 2006. Overoptimism and the performance of entrepreneurial firms. Management Sci. 52 173-186.
53. Makadok, R. 2003. Doing the right thing and knowing the right thing to do: Why the whole is greater than the sum of the parts. Strategic Management J. 24(10) 1043-1055.
54. Makadok, R., J. Barney. 2001. Strategic factor market intelligence: An application of information economics to strategy formulation and competitor intelligence. Management Sci. 47(12) 1621-1638.
55. Manove, M., J. Padilla. 1999. Banking (conservatively) with optimists. RAND J. Econom. 30(2) 324-350.
56. March, J., Z. Shapira. 1987. Managerial perspectives on risk and risk taking. Management Sci. 33(11) 1404-1418.
57. Mayer, K. J., N. S. Argyres.. 2004. Learning to contract: Evidence from the personal computer industry. Organ. Sci. 15(4) 394-410.
58. Mayer, K. J., J. A. Nickerson. 2005. Antecedents and performance implications of contracting for knowledge workers: Evidence from information technology services. Organ. Sci. 16(3) 225-242.
59. Mayer, K. J., J. A. Nickerson, H. Owan. 2004. Are supply and plant inspections complements or substitutes? A strategic and operational assessment of inspection practices in biotechnology. Management Sci. 50(8) 1064-1081.
60. Milgrom, P. 1989. Auctions and bidding: A primer. J. Econom. Perspectives 3(3) 3-22.
61. Moore, D., J. Oesch, C. Zietsma. 2007. What competition? Myopic self-focus in market-entry decisions. Organ. Sci. 18(3) 440-454.
62. Moskowitz, T. J., A. Vissing-Jorgensen. 2002. The returns to entrepreneurial investment: A private equity premium puzzle? Amer. Econom. Rev. 92(4) 745-778.
63. Nickerson, J. A., T. R. Zenger. 2002. Being efficiently fickle: A dynamic theory of organizational choice. Organ. Sci. 13(5) 547-566.
64. Powell, T. C., D. Lovallo, C. Caringal. 2006. Causal ambiguity, management perception, and firm performance. Acad. Management Rev. 31(1) 175-196.
65. Presti, K. 1997. Glitch found in Rockwell 56-kbps modem chipsets. Computer Reseller News (March 24) 14.
66. Sahlman, W. A. 1997. How to write a great business plan. Harvard Bus. Rev. 75 98-108.
67. Sampson, R. C. 2004. The cost of misaligned governance in R&D alliances. J. Law Econom. Organ. 20(2) 484-526.
68. Sarasvathy, D. K., H. A. Simon, L. Lave. 1998. Perceiving and managing business risks: Differences between entrepreneurs and bankers. J. Econom. Behav. Organ. 33 207-226.
69. Schumpeter, J. 1934. The Theory of Economic Development. Harvard University Press, Cambridge, MA.
70. Shane, S., D. Cable. 2002. Network ties, reputation, and the financing of new ventures. Management Sci. 48(3) 364-381.
71. Shane, S., S. Venkataraman. 2000. The promise of entrepreneurship as a field of research. Acad. Management Rev. 25(1) 217-226.
72. Shapira, Z. 1995. Risk Taking: A Managerial Perspective. Russell Sage Foundation, New York.
73. Taylor, S. E., J. D. Brown. 1988. Illusion and well-being: A social psychology perspective on mental health. Psych. Bull. 103(2) 193-210.
74. Teece, D. J. 1986. Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy. Res. Policy 15(6) 286-305.
75. Tversky, A., D. Kahneman. 1974. Judgment under uncertainty: Heuristics and biases. Sci. 185 1124-1131.
76. Udell, G. 1990. It's still caveat, inventor. J. Product Innovation Management 7(3) 230-243.
77. U.S. Small Business Administration. 1997. The state of small business: A report to the President. Report, U.S. Small Business Administration, Washington, DC.
78. Van den Steen, E. 2004. Rational overoptimism (and other biases). Amer. Econom. Rev. 94(4) 1141-1151.
79. van Zimmeren, E., B. Verbeure, G. Matthijs, G. Van Overwalle. 2006. A clearing house for diagnostic testing. World Health Organ. 84 352-359.
80. Weinstein, N. D. 1980. Unrealistic optimism about future life events. J. Personality Soc. Psych. 39(5) 806-820.
81. Wu, B., A. Knott. 2006. Entrepreneurial risk and market entry. Management Sci. 52(9) 1315-1330.
82. Zenger, T. 1994. Explaining organizational diseconomies of scale in R&D: The allocation of engineering talent, ideas, and effort by firm size. Management Sci. 40(6) 708-729.
83. Zott, C., Q. Huy. 2007. How entrepreneurs use symbolic management to acquire resources. Admin. Sci. Quart. 52(1) 70-105.