A novel framework for how entrepreneurs can use Bayesian reasoning to make decisions.
This edited volume introduces and explores the concept of Bayesian entrepreneurship, a novel framework for understanding entrepreneurial decision-making under uncertainty. The book, edited by Ajay Agrawal, Arnaldo Camuffo, Alfonso Gambardella, Joshua Gans, Erin L. Scott, and Scott Stern, brings together contributions from leading scholars to examine how entrepreneurs form beliefs about opportunities, learn through experimentation, and make strategic decisions.
The Bayesian approach emphasizes the critical interaction between an entrepreneur's prior beliefs and their capacity for learning and experimentation to update those beliefs. This dynamic process allows entrepreneurs to formulate and test theories about value creation and capture, attract resources and capabilities, and implement effective entrepreneurial strategies. The volume is organized around four key themes:
- the foundations and distinguishing features of Bayesian entrepreneurship
- how entrepreneurs form and update prior beliefs in entrepreneurial decision-making
- the role of experimentation and learning in entrepreneurial strategy
- applications to entrepreneurship education and practice
The book offers both theoretical contributions advancing our understanding of entrepreneurial decision-making and practical insights for entrepreneurs and educators.
