Karlan, Dean S.
[Verfasser:in]
;
Knight, Ryan
[Sonstige Person, Familie und Körperschaft];
Udry, Christopher
[Sonstige Person, Familie und Körperschaft]
Erschienen in:Center for Global Development Working Paper ; No. 312
Umfang:
1 Online-Ressource (55 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.2226588
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 29, 2012 erstellt
Beschreibung:
We show how financial and managerial constraints impede experimentation and thus limit learning about the profitability of investments. Imperfect information about one's own type, but willingness to experiment to learn one's type, leads to short-run negative expected returns to investments, with some outliers succeeding. We find in an experiment that entrepreneurs invest randomized grants of cash and adopt advice from randomized grants of consulting services, but both lead to lower profits on average. In the long run, they revert back to their prior scale of operations. In a meta-analysis, results from 19 other experiments find mixed support for this theory