Choosing an Experimental Strategy: How Experimental Heisenberg Effects Can Affect Decisions About When and How to Experiment

19 Pages Posted: 18 Jun 2024

See all articles by Jay B. Barney

Jay B. Barney

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: February 16, 2024

Abstract

Current thinking is that experiments should be conducted when the value of an experiment’s informativeness is greater than its cost. This thinking fails to recognize that experimenting can also change the value of a business idea—what we call an experiment’s Heisenberg effects. These effects can increase or decrease the value of a business idea and can affect both when and how a firm should experiment. Failure to consider Heisenberg effects can lead a firm to experiment when it should not, to not experiment when it should, and to experiment in ways that do not maximize a business idea’s value.

Keywords: New Experimental Strategy; Experimentation; Entrepreneurship

Suggested Citation

Barney, Jay B. and Shelef, Orie and Wuebker, Robert, Choosing an Experimental Strategy: How Experimental Heisenberg Effects Can Affect Decisions About When and How to Experiment (February 16, 2024). Available at SSRN: https://ssrn.com/abstract=4836867 or http://dx.doi.org/10.2139/ssrn.4836867

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

Orie Shelef (Contact Author)

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

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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