Experimental Strategy With Entangled Ideas

36 Pages Posted: 21 May 2024

See all articles by Jay B. Barney

Jay B. Barney

University of Utah - David Eccles School of Business

Lyda S. Bigelow

University of Utah - David Eccles School of Business

Orie Shelef

University of Utah - David Eccles School of Business

Robert Wuebker

University of Utah - David Eccles School of Business

Date Written: May 20, 2024

Abstract

Prior work in experimental strategy has largely assumed that actors make decisions about when and how to experiment on one business idea at a time. Even when prior work allows for the possibility that an actor may possess multiple business ideas, this work has yet to consider how decisions about when and how to experiment on one business idea might affect decisions about when and how to experiment on another idea. Using a formal model, this paper introduces the possibility of entangled ideas - ideas that are connected such that information about the value of one idea informs an actor about the value of another idea - and considers their implications for experimental strategy. Analysis of the model shows that the possibility of entangled ideas overturns many of the recommendations in prior work - changing whether an actor experiments or not, how the actor crafts a program of experimentation, and what the actor does after reviewing the results of an experiment.

Keywords: New Experimental Strategy, Entangled Ideas, Entrepreneurship, Experimentation

JEL Classification: L20, L26, L29, D21, D23

Suggested Citation

Barney, Jay B. and Bigelow, Lyda S. and Shelef, Orie and Wuebker, Robert, Experimental Strategy With Entangled Ideas (May 20, 2024). Available at SSRN: https://ssrn.com/abstract=4834613 or http://dx.doi.org/10.2139/ssrn.4834613

Jay B. Barney

University of Utah - David Eccles School of Business ( email )

1645 E Campus Center Dr
Salt Lake City, UT 84112-9303
United States

Lyda S. Bigelow

University of Utah - David Eccles School of Business ( email )

1645 E Campus Center Dr
Salt Lake City, UT 84112-9303
United States
801-585-3471 (Phone)

Orie Shelef

University of Utah - David Eccles School of Business ( email )

1645 E Campus Center Dr
Salt Lake City, UT 84112-9303
United States

HOME PAGE: http://www.orieshelef.net

Robert Wuebker (Contact Author)

University of Utah - David Eccles School of Business ( email )

1645 East Campus Circle Drive
Salt Lake City, UT 84112-9304
United States

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