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    Rights statement: This is the peer reviewed version of the following article: Tsionas, M. G., & Patel, P. C. (2022). An entrepreneur's dilemma: An optimal stopping rule in pivoting. Managerial and Decision Economics, 1– 18. https://doi.org/10.1002/mde.3610 which has been published in final form at https://onlinelibrary.wiley.com/doi/10.1002/mde.3610 This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.

    Accepted author manuscript, 429 KB, PDF document

    Available under license: CC BY-NC: Creative Commons Attribution-NonCommercial 4.0 International License

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An entrepreneur's dilemma: An optimal stopping rule in pivoting

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Published
<mark>Journal publication date</mark>31/12/2022
<mark>Journal</mark>Managerial and Decision Economics
Issue number8
Volume43
Number of pages18
Pages (from-to)3498-3515
Publication StatusPublished
Early online date26/03/22
<mark>Original language</mark>English

Abstract

Though pivoting is widely practiced by entrepreneurs, an optimal stopping rule in pivoting remains unexplored. Proposing an optimal foraging model and accounting for competition in exploiting an opportunity, we identify an optimal stopping rule of 30% gain-to-loss ratio. That is, additional gains are less feasible when 70% of the pivoting across future plausible versions of opportunities are traversed to. The findings have practical implications for entrepreneurs.

Bibliographic note

This is the peer reviewed version of the following article: Tsionas, M. G., & Patel, P. C. (2022). An entrepreneur's dilemma: An optimal stopping rule in pivoting. Managerial and Decision Economics, 1– 18. https://doi.org/10.1002/mde.3610 which has been published in final form at https://onlinelibrary.wiley.com/doi/10.1002/mde.3610 This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.