Boundedly Rational Entrepreneurs and Antitrust

Authors

Avishalom Tor, Notre Dame Law School and University of HaifaFollow

Document Type

Article

Publication Date

2016

Publication Information

61 Antitrust Bull. 520 (2016)

Abstract

This article examines entrepreneurial activity and its implication for policy and antitrust law from a behavioral perspective. In particular, the analysis here focuses on the role of two sets of behavioral phenomena—overconfident beliefs and risk-seeking preferences—in facilitating boundedly rational entrepreneurship. Boundedly rational entrepreneurs may engage in entrepreneurial activity, such as the starting of new business ventures, under circumstances in which rational entrepreneurs would decline to do so. Consequently, overconfident or risk-seeking entrants compete with their more rational counterparts and create a post-entry landscape that differs markedly from the picture assumed by traditional economic accounts of entrepreneurial activity. The behaviorally informed analysis of entry sheds new light on the dynamics of competition among entrepreneurs and on its implications for policy and antitrust law.

Comments

Avishalom Tor joined the faculty at Notre Dame Law School in 2011.

Recommended Citation

Avishalom Tor, Boundedly Rational Entrepreneurs and Antitrust, 61 Antitrust Bull. 520 (2016).
Available at: https://scholarship.law.nd.edu/law_faculty_scholarship/1513