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Entrepreneurs Don't Have an Optimism Bias

blogs.hbr.org

9 points by smit 12 years ago · 3 comments

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codex 12 years ago

The high failure rates of startups suggest otherwise.

  • cookingrobot 12 years ago

    Not so. The payoff of a successful startup is so high that it's often a good bet even with a high chance of failure.

    • codex 12 years ago

      Expected value only enters the picture if you can play many, many times. It's more realistic to look at the median outcome, yet every entrepreneur is transfixed by the big exits. If that's not optimism I don't know what is.

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