Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/161121
Authors: 
Barirani, Ahmad
Sloof, Randolph
van Praag, Mirjam C.
Year of Publication: 
2017
Series/Report no.: 
IZA Discussion Papers 10498
Abstract: 
We test the hypothesis, based on popular and theoretical perspectives, that entrepreneurs are more action-oriented than other occupational groups. We compare their playing strategies in an optimal stopping game using a randomized online experiment among 100s of entrepreneurs, managers and employees. Our experimental results show that entrepreneurs are indeed more action-oriented than others. We theorize that this is driven by their lower levels of loss aversion and higher levels of curiosity. Our empirical test results show that (i) entrepreneurs score indeed higher, on average, than managers and employees on curiosity and lower on loss aversion; (ii) the difference in action-orientedness between entrepreneurs and others vanishes when controlling for individual curiosity levels and (iii) an alternative treatment that provides subjects with counterfactual information (about what would have happened in case of stopping) increases their willingness to stop. Under some assumptions, the combination of these results leads to the conclusion that the higher action-orientedness of entrepreneurs can be linked to their greater curiosity, but not to their lower level of loss aversion. Hence, we find support for the intuitive idea that (curiosity driven) action-orientedness enhances the identification and/or exploitation of opportunities.
Subjects: 
entrepreneurs
managers
employees
inaction
curiosity
loss aversion
lab-in-the field experiment
JEL: 
L26
C93
D03
Document Type: 
Working Paper

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