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Seeking the roots of entrepreneurship: Insights from behavioral economics

Åstebro, Thomas ; Herz, Holger ; Nanda, Ramana ; Weber, Roberto A.

In: Journal of Economic Perspectives, 2014, vol. 28, no. 3, p. 49-70

There is a growing body of evidence that many entrepreneurs seem to enter and persist in entrepreneurship despite earning low risk-adjusted returns. This has lead to attempts to provide explanations—using both standard economic theory and behavioral economics—for why certain individuals may be attracted to such an apparently unprofitable activity. Drawing on research in behavioral economics,...