Preference for Skew in Lotteries: Evidence from the Laboratory

We use a laboratory experiment to investigate how positive skew influences risky choices. We use a non-parametric method to classify subjects according to risk and skew preferences and to test whether their choices are compatible with expected utility or not. We find that subjects make riskier choices when lotteries display positive skew. Half of the subjects make skew seeking choices and these come roughly in equal proportions from those who violate expected utility axioms and from those who do not. Structural estimation of decision models for the sub-samples defined by our classification shows that probability distortion can explain heterogeneity in behavior

Risk, balanced skills and entrepreneurship

This paper proposes that risk aversion encourages individuals to invest in balanced skill profiles, making them more likely to become entrepreneurs. By not taking this possible linkage into account, previous research has underestimated the impacts of both risk aversion and balanced skills on the likelihood individuals choose entrepreneurship. Data on Dutch university graduates provide an illustration supporting our contention. We raise the possibility that even risk-averse people might be suited to entrepreneurship; and it may also help explain why prior research has generated somewhat mixed evidence about the effects of risk aversion on selection into entrepreneurship

Business experience and start-up size: buying more lottery tickets next time around?

This paper explores the determinants of start-up size by focusing on a cohort of 6247 businesses that started trading in 2004, using a unique dataset on customer records at Barclays Bank. Quantile regressions show that prior business experience is significantly related with start-up size, as are a number of other variables such as age, education and bank account activity. Quantile treatment effects (QTE) estimates show similar results, with the effect of business experience on (log) start-up size being roughly constant across the quantiles. Prior personal business experience leads to an increase in expected start-up size of about 50%. Instrumental variable QTE estimates are even higher, although there are concerns about the validity of the instrument

New technologies and firm organization : the case of electronic traceability systems in French agribusiness

This paper considers the relationship between the adoption of electronic traceability systems (ETSs) and the organization of firms. More precisely, it analyzes the respective roles of a firm's organizational structure, and organizational changes, in the process of ETS adoption in agribusiness. We use data from the French "Organizational Changes and Computerization" survey from 2006. We test a probit model to demonstrate the organizational structure and organizational changes underlying the firm's ETS adoption choice. Results show that ETS adoption is strongly favored by organizations with heavy hierarchical structures, standardized managerial practices and contractual mechanisms with external partners. This adoption process seems to coevolve with the organization: firms that implemented an ETS during the observed period (2003-2006) have experienced the most important organizational changes in terms of managerial practices, information systems and contractual relations, as well as the strengthening of the intermediate levels in the hierarchy

Evolving missions and university entrepreneurship:Academic spin-offs and graduate start-ups in the entrepreneurial society

A recent call has urged to broaden the conceptualization of university entrepreneurship in order to appreciate the heterogeneity of contexts and actors involved in the process of entrepreneurial creation. A gap still persists in the understanding of the variety of ventures generated by different academic stakeholders, and the relationships between these entrepreneurial developments and university missions, namely, teaching and research. This paper addresses this particular gap by looking at how university teaching and research activities influence universities’ entrepreneurial ventures such as academic spin-offs and graduate start-ups. Empirically, we analyse the English higher education sector, drawing on institutional data at the university level. First, we explore the ways in which teaching and research activities are configured, and secondly, we examine how such configurations relate to academic spin-offs and graduate start-ups across different universities over time. Our findings suggest, first, that the evolution of USOs and graduate start-ups exhibit two different pathways over time; and second, that teaching and research both affect entrepreneurial ventures but their effect is different.JRC.B.4-Human Capital and Employmen