Understanding the Role of Perceptions in Opportunity Evaluation: A Discrete Choice Experiment

Per Bylund and Trey Malone ()

Entrepreneurship Research Journal, 2024, vol. 14, issue 2, 759-796

Abstract: We construct a discrete choice experiment to study opportunity evaluation by entrepreneurs. This new method in entrepreneurship studies allows us to measure entrepreneurs’ utility functions and thereby their perceptions of opportunity. Consequently, we produce empirical evidence for how entrepreneurs evaluate opportunities beyond the objective facts and find two types of entrepreneurs with different evaluative behavior that cannot be explained by situational or demographic differences. We contribute to the opportunity evaluation literature by measuring perceptions, provide theoretical argument and present empirical evidence for heterogeneity among entrepreneurs, and introduce new methods that allow for more nuanced empirical analyses of entrepreneurial decision-making.

Keywords: discrete choice experiment; latent class analysis; entrepreneurial decision-making; opportunity evaluation (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/erj-2021-0232 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:erjour:v:14:y:2024:i:2:p:759-796:n:9

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/erj/html

DOI: 10.1515/erj-2021-0232

Access Statistics for this article

Entrepreneurship Research Journal is currently edited by Chandra S. Mishra and Ramona K. Zachary

More articles in Entrepreneurship Research Journal from De Gruyter
Bibliographic data for series maintained by Peter Golla ().