The Effects of Framing on Experienced and Nascent Entrepreneurs' Judgment and Decision Making

摘要

the purpose of this Paper is to develop our understanding of Entrepreneurs' judgment and decision making when they face with the framing problems which contain Decision complexity and uncertainty. We compare two groups of entrepreneurs' decision (nascent and experienced entrepreneur) with those students in an experimental study. The study draw on an internet based survey sent in spring 2010 to 581 Adults (214 students, 185 nascent entrepreneurs, and 182 experienced entrepreneurs). Students were all from the University of Tehran and both groups' entrepreneurs were front different small business in three different industries. Participants were randomly assigned to three different task domains. In addition results of Kahneman and Tversky' Asian disease problem applied for comparison. Results show that experienced entrepreneurs show a very few tendency toward framing effects. On the other hand nascent entrepreneurs were more biased toward loss aversion. In addition, experienced entrepreneur scrutinizing the decision problem differently, their experience and alertness enable them to analyze the framing effects.