Monopolistic competition and entrepreneurial risk-taking [An article from: Economics Letters]

This digital document is a journal article from Economics Letters, published by Elsevier in 2006. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.

Description:
Imperfect competition biases occupational choice towards firm ownership, thereby partly offsetting inefficiencies from absent risk-pooling markets. For increasing risk aversion, too many firms remain in the market, thus mutually deteriorating profits and possibly explaining the empirically observed low risk premiums on entrepreneurial income.