How Much Should an Investor Trust the Startup Entrepreneur ? - A Network Model

نویسندگان

  • Anna Klabunde
  • Thomas K. Bauer
  • Wolfgang Leininger
چکیده

Trust is an important determinant of start-up fi nancing. In a simple agentbased model it is determined what the best trusting strategy is for a collective of investors and whether it is rational for an individual investor to deviate from this collective optimum. Trust depends on a measure of social distance and is the precondition for investment. Trust increases and decreases based on whether an investor is satisfi ed with the interest payments received from an entrepreneur. If an investor is dissatisfi ed, he terminates the relation with the entrepreneur. For assessing the quality of their own investments, investors communicate with other investors in a network-like structure. I fi nd that, as a collective, it is best for investors to compare their returns critically in order to identify unproductive entrepreneurs, but to be tolerant regarding existing links to entrepreneurs in order not to terminate profi table relations because of minor productivity drops. However, it is optimal for an individual investor to deviate from this strategy and to be less easily disappointed, but to decrease trust in larger steps. In a sense, an individual investor can freeride on the others’ critical assessment. If all investors behave according to this latter strategy, too many unproductive fi rms remain in the market and the average investor’s return is lower than in the collective optimum. JEL Classifi cation: C63, G02, G24, L26

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

How much Should an Investor Trust the Startup Entrepreneur ? A Network Model # 450

Trust is an important determinant of start-up fi nancing. In a simple agentbased model it is determined what the best trusting strategy is for a collective of investors and whether it is rational for an individual investor to deviate from this collective optimum. Trust depends on a measure of social distance and is the precondition for investment. Trust increases and decreases based on whether ...

متن کامل

Know How, Know Whom, Know Where: A Global Analysis of Investor Experience and Startup Performance

This dissertation analyzes where and when experienced investors add value to startups. Building on the resource-dependence theory and the relational view of the firm, I argue that the positive effect of investor experience on startup performance is stronger when the startup faces a more uncertain environment. The first essay predicts a greater effect of investor experience early in the life cyc...

متن کامل

تأثیرگذاری فاکتورهای کلیدی بر مدل حکمرانی شبکه‌ای مطلوب در نظام سلامت: رویکرد مدل‌سازی معادلات ساختاری

Introduction: Due to the complexity of health services, which require the engagement of different parties for the provision of integrated services, inappropriate network governance models can lead to financial conflicts, lack of transparency of accountabilities for medical errors, and difficulties on multi-professional team working. Therefore, this study aimed to examine factors influencing the...

متن کامل

Financing the Entrepreneurial Venture

This paper is about …nancial contracting choices for the entrepreneur. In an incomplete contracts model, the entrepreneur can design contracts contingent on three possible control right allocations: entrepreneur-control, investor-control, and joint control, with each allocation inducing di¤erent e¤ort levels by both the entrepreneur and the investor. Four types of contract emerge as potentially...

متن کامل

AHP Techniques for Trust Evaluation in Semantic Web

The increasing reliance on information gathered from the web and other internet technologies raise the issue of trust. Through the development of semantic Web, One major difficulty is that, by its very nature, the semantic web is a large, uncensored system to which anyone may contribute. This raises the question of how much credence to give each resource. Each user knows the trustworthiness of ...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

عنوان ژورنال:

دوره   شماره 

صفحات  -

تاریخ انتشار 2013