Affordable loss: behavioral economic aspects of the plunge decision

By Nicholas Dew, Saras Sarasathy, Stuart Read, Robert Wiltbank. 2009

243 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Management of Technology and Innovation

View Paper: https://www.semanticscholar.org/paper/e9ebb7975728e34f8b3844413774450e392bd2b0

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Citations in the corpus

Uncertainty Types and Transitions in the Entrepreneurial Process (2017, background): “Of the remaining options, the most possible and highly ascendant outcomes for each option are weighed, after which an option is chosen according to the individuals’ personal characteristics (e.g. risk aversion) and the degree of “affordable loss” (Dew et al. 2009b; Shackle 1966).”
Effectuation, Exploratory Learning and New Venture Performance: Evidence from China** (2017, background): “Given that entrepreneurs in new ventures may be suspicious of the information needed to find new opportunities worth plunging into (Dew et al. 2009), new ventures are required to search, recognize, and understand the knowledge generated from the outcomes and inputs of incremental resource…”
Time and the Entrepreneurial Journey: The Problems and Promise of Studying Entrepreneurship as a Process (2013, background): “A plunge decision that resembles the “initiation” stage is often required of the entrepreneur who can no longer pursue his or her dream on the side and must instead abandon the stable income of regular employment to move forward with the venture (Dew et al., 2009).”
Bridging Behavioral Models and Theoretical Concepts: Effectuation and Bricolage in the Opportunity Creation Framework (2016, unknown): “Effectuation captures the decision-making heuristics of expert entrepreneurs, empirically derived through quasi-experimental interviews with serial entrepreneurs (Sarasvathy, 2001; Dew et al., 2009a).”
Entrepreneurial judgment as empathic accuracy: a sequential decision-making approach to entrepreneurial action (2013, background): “…about the nature of the entrepreneurial response as an investment of one’s time, talent, or treasure, in the form of a decision or commitment to act (Dew et al., 2009; Foss and Klein, 2012; Mullins and Forlani, 2005; Shepherd et al., 2007), dissension remains concerning the nature of the stimulus…”
Opportunity Evaluation as Rule‐Based Decision Making (2014, result): “Further, our findings are consistent with recent work that reveals entrepreneurs carefully consider loss, such as what level of loss is ‘affordable’ (Dew et al., 2009) and that entrepreneurs would rather ‘risk missing than sinking the boat’ (Mullins and Forlani, 2005, p. 47).”
Life After Business Failure (2013, background): “Dew et al. (2009) argued that deploying this principle provides the potential entrepreneur with not only the resolve to move forward but also the emotional backup required to quit when the time comes, thereby protecting the entrepreneur from escalating commitment (Staw, 1981).”
Social structure, reasonable gain, and entrepreneurship in Africa (2016, unknown): “Increased access to capital will also increase perceptions of affordable loss (Dew et al., 2009).”