Bayesian Entrepreneurship

A novel framework for how entrepreneurs can use Bayesian reasoning to make decisions.

This edited volume introduces and explores the concept of Bayesian entrepreneurship, a novel framework for understanding entrepreneurial decision-making under uncertainty. It brings together contributions from leading scholars to examine how entrepreneurs form beliefs about opportunities, learn through experimentation, and make strategic decisions.

The Bayesian approach emphasizes the critical interaction between an entrepreneur’s prior beliefs and their capacity for learning and experimentation to update those beliefs. This dynamic process allows entrepreneurs to formulate and test theories about value creation and capture, attract resources and capabilities, and implement effective entrepreneurial strategies. The volume is organized around four key themes:

• the foundations and distinguishing features of Bayesian entrepreneurship
• how entrepreneurs form and update prior beliefs in entrepreneurial decision-making
• the role of experimentation and learning in entrepreneurial strategy
• applications to entrepreneurship education and practice

Bayesian Entrepreneurship offers both theoretical contributions advancing our understanding of entrepreneurial decision-making and practical insights for entrepreneurs and educators.

Ajay Agrawal is Professor at University of Toronto’s Rotman School of Management and Geoffrey Taber Chair in Entrepreneurship and Innovation. He is the founder of the Creative Destruction Lab.

Arnaldo Camuffo is Professor at Bocconi University and Co-Director of the ION Management Science Lab at SDA Bocconi School of Management.

Alfonso Gambardella is Professor of Management of Innovation at Bocconi University.

Joshua Gans is Professor of Strategic Management and holds the Jeffrey S. Skoll Chair of Technical Innovation and Entrepreneurship at the University of Toronto’s Rotman School of Management. He is the author of The Disruption Dilemma (MIT Press), among other titles, and coauthor of Prediction Machines and Innovation + Equality (MIT Press).

Erin L. Scott is Senior Lecturer at MIT Sloan School of Management.

Scott Stern is David Sarnoff Professor of Management at MIT Sloan School of Management.