Stabsseminar fredag

Institutt for foretaksøkonomi og Institutt for samfunnsøkonomi har felles stabsseminar fredag 31. oktober, ved Denis Gromb fra London Business School. Han skal snakke om temaet Entrepreneurship in Equilibrium.

30.10.2003 - Knut André Karlstad

Tid: Fredag 31. oktober klokken 12.15-13.45.
Sted: Karl Borchs auditorium.

Paper er tilgjengelig på

http://www.nhh.no/for/seminars/2003-fall/311003.pdf.

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Abstract
This paper compares the financing of new ventures in start-ups (entrepreneurship) and in established firms (intrapreneurship). Intrapreneurship allows established firms to use information on failed intrapreneurs to redeploy them into other jobs. By contrast, failed entrepreneurs must seek other jobs in an imperfectly informed external labor market. While this is ex-post inefficient, it provides entrepreneurs with high-powered incentives ex ante. We show that two types of equilibria can arise (and sometimes coexist). In a low (high) entrepreneurship equilibrium, the market for failed entrepreneurs is thin (deep). Internal (external) labor markets are thus particularly valuable, which favors intrapreneurship (entrepreneurship). We also characterize conditions under which there can be too little or too much entrepreneuial activity in equilibrium.