Arnaldo Camuffo, Alessandro Cordova, Alfonso Gambardella, 06 January 2018

Entrepreneurs often predict future revenues using rules of thumb. The column argues that by testing precise hypotheses, 'scientist-entrepreneurs' would be less likely to invest in failures. A randomised controlled trial among Italian start-ups showed that this technique increased average returns for entrepreneurs. Used more generally, the precision effect may help screen out bad business ideas at an early stage.

Rebecca Thornton, Anne Fitzpatrick, 04 January 2018

Miriam Bruhn, Dean Karlan, Antoinette Schoar, 18 December 2017

Mushfiq Mobarak, Karen Levy, Maira Reimão, 14 November 2017

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