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2005-10-07Buch DOI: 10.18452/3472
Intuitive Optimizing for Time Allocation Decisions in Newly Formed Ventures
dc.contributor.authorSchade, Christian
dc.date.accessioned2017-06-15T21:06:16Z
dc.date.available2017-06-15T21:06:16Z
dc.date.created2005-10-07
dc.date.issued2005-10-07
dc.identifier.issn1436-1086
dc.identifier.urihttp://edoc.hu-berlin.de/18452/4124
dc.description.abstractThis article investigates whether decision makers intuitively optimize close to the normative prediction in entrepreneurial decision situations where their time must be allocated between a wage job and a newly formed venture. We offer an analytical model based on maximizing expected utility, and derive an optimal time allocation strategy for decreasing, constant and increasing returns from time invested in the venture. The model’s predictions are tested in a simple questionnaire experiment where respondents have to detect corner solutions, that is, they should allocate to the venture either the maximum or the minimum possible time. Respondents are found to allocate time relatively close to the normative predictions, although with systematic deviations that are consistent with well-known decision anomalies. Risk propensity is found to have an impact on the decisions, but it should not according to the model. Respondents appear to use an anchoring and adjustment procedure and are influenced by the so-called affect heuristic, which may explain why those who do not mathematically optimize have their decision partially driven by their risk propensity. Implications of our findings for entrepreneurs and institutions dealing with entrepreneurs are discussed.eng
dc.language.isoeng
dc.publisherHumboldt-Universität zu Berlin, Wirtschaftswissenschaftliche Fakultät
dc.rights.urihttp://rightsstatements.org/vocab/InC/1.0/
dc.subjectDecision Makingeng
dc.subjectIntuitive Optimizingeng
dc.subjectMicro Economics Modeleng
dc.subjectTime Allocation Strategyeng
dc.subjectEntrepreneurshipeng
dc.subjectQuestionnaire Experimenteng
dc.subject.ddc330 Wirtschaft
dc.titleIntuitive Optimizing for Time Allocation Decisions in Newly Formed Ventures
dc.typebook
dc.identifier.urnurn:nbn:de:kobv:11-10048826
dc.identifier.doihttp://dx.doi.org/10.18452/3472
local.edoc.pages32
local.edoc.type-nameBuch
local.edoc.container-typeseries
local.edoc.container-type-nameSchriftenreihe
local.edoc.container-year2002
dc.identifier.zdb2135319-0
bua.series.nameSonderforschungsbereich 373: Quantification and Simulation of Economic Processes
bua.series.issuenumber2002,24

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