Prior-Knowledge and Opportunity Identification

18 Pages Posted: 6 Nov 2013

See all articles by Jason Arentz

Jason Arentz

University of Arkansas - Sam M. Walton College of Business

Frederic Sautet

The Catholic University of America (CUA) - Busch School of Business and Economics

Virgil Henry Storr

George Mason University - Department of Economics; George Mason University - Mercatus Center; University of Arizona Center for the Philosophy of Freedom

Date Written: June 19, 2012

Abstract

An entrepreneur’s prior knowledge and experience play a critical role in his ability to identify and exploit entrepreneurial opportunities. Although entrepreneurship research has acknowledged the role that prior information and prior knowledge play in opportunity recognition, few studies have explored their role in entrepreneurial discovery. We test the role of a particular prior knowledge in entrepreneurial discovery within a laboratory setting. Participants were randomly assigned to one of two treatment groups. Those in the propitious treatment were given prior knowledge that oriented them toward the arbitrage opportunity within the experiment, and those in the unpropitious treatment were given prior knowledge that oriented them away. As hypothesized, those in the propitious treatment were significantly more likely to discover the arbitrage opportunity.

Keywords: Alertness, Discovery, Entrepreneurship, Opportunity, Prior knowledge

Suggested Citation

Arentz, Jason and Sautet, Frederic E. and Storr, Virgil Henry, Prior-Knowledge and Opportunity Identification (June 19, 2012). Small Business Economics, Vol. 41, No. 2, 2013. Available at SSRN: https://ssrn.com/abstract=2350834

Jason Arentz

University of Arkansas - Sam M. Walton College of Business ( email )

Fayetteville, AR 72701
United States

Frederic E. Sautet

The Catholic University of America (CUA) - Busch School of Business and Economics ( email )

McMahon Hall
620 Michigan Ave, NE
Washington, DC 20064
United States

HOME PAGE: http://business.cua.edu/faculty/sautet.cfm

Virgil Henry Storr (Contact Author)

George Mason University - Department of Economics ( email )

4400 University Drive
Fairfax, VA 22030
United States

HOME PAGE: http://virgilstorr.org/

George Mason University - Mercatus Center ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

HOME PAGE: http://virgilstorr.org/

University of Arizona Center for the Philosophy of Freedom ( email )

Department of History
Tucson, AZ 85721
United States

HOME PAGE: http://virgilstorr.org/

Register to save articles to
your library

Register

Paper statistics

Downloads
78
rank
292,580
Abstract Views
614
PlumX Metrics